Renovation Expenses & Future Mortgage Qualification

[Greg Shyne]

I recently purchased (Oct 2016), renovated, and refinanced (March 2017) my first investment property. I plan to purchase at least one or two more properties this year. I am now getting ready to file my tax returns for 2016. My concern is with writing off my expenses from the renovation… I'm concerned it may lower my net income for the past year to the point where it could cause me to not qualify for any additional mortgages due to the lower net income. I’m aware that I would not be able to use the income from the new rental property until it has been included on my tax returns next year anyway. 

Any advice would be greatly appreciated.

Thanks!

Greg