Start-up cost tax deduction

[Shawn D Augusti]

I'm in the process of acquiring a second rental property. Can I calm/deduct start-up cost for this property if i add it to an exciting LLC which already holds my first rental or what that expense be considered "operational cost".

[Bill Hampton]

@Shawn D Augusti

By start up costs if you mean repairs or improvements done to the property before it's placed into service, those expenses are added to your cost basis and depreciated. These expenses may also be eligible for bonus depreciation. 

I recommend working an accountant who specializes in real estate taxation and tax planning. You may want to consider working with your accountant remotely to expand your options. 

You want an accountant who can help you strategize throughout the year and who can help you understand the implications of the financial decisions you are making throughout the year. 

Good luck. 

[Markus Shobe]

Those cost would get added to the basis of the property and depreciated over a certain amount of years. 

[Basit Siddiqi]

Costs related to the acquisition of the property may potentially be added to the basis of the property and depreciated over its useful life.

[Corby Goade]

I came here to say the exact same thing everyone else already said. 

But- since you are a newbie, in lay person's terms, the answer is yes...but slowly and over a very long time. 27.5 years, to be exact. 

Congrats on your investment!

[Shawn D Augusti]

Thank you everyone for the helpful info.

[Fulton Sanchez]

Yes, you can. When adding a second rental property to an existing LLC, you can generally deduct start-up costs and operational expenses. For accurate tax treatment and to maximize deductions, this is the best place to find answers and professional support.