Seeking Financing for New Property / Tax Write-Off Gone Bad

Rental Property Investor · Los Angeles, CA · Member since 2015 · 73 posts · 55 votes

Hello BP Community -

I made the mistake of making too many rental property write-offs on my tax returns (newbie) and am having trouble getting a loan for a property I have my eye on in Florida ($83K).

Does anyone know a Lender that can help me finance this deal (found on roofstock.com)?

Also, does anyone have any tips to fix this or to avoid this mistake the next time around?

Thanks guys!

- G

1 Reply

8 views

Most Popular Reply

Tom S.

Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes

@Gabrielle Martin Not sure what you mean by too many write offs. You're legally entitled to deduct all expenses related to the property. In addition, you get depreciation, and lenders will typically adjust for that.

If your lender isn't adjusting for the depreciation, keep calling around.

Good luck!

1 Reply

See this reply in the discussion

4 Replies

Jump to latestLatest

Sort by

Tom S.
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
8y
@Gabrielle Martin Not sure what you mean by too many write offs. You're legally entitled to deduct all expenses related to the property. In addition, you get depreciation, and lenders will typically adjust for that.
If your lender isn't adjusting for the depreciation, keep calling around.
Good luck!
1 Reply
Bob Green
Lender · Mokena, IL · Member since 2014 · 1k+ posts · 261 votes
8y
Gabrielle,
Does the property require rehab or is it turnkey?
0 Reply
Gabrielle Martin
OP
Rental Property Investor · Los Angeles, CA · Member since 2015 · 73 posts · 55 votes
8y
Originally posted by @Bob Green:

Gabrielle,
Does the property require rehab or is it turnkey?
It's turn-key and already has a tenant.
0 Reply
Basit SiddiqiBusiness Member
Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
8y
@Gabrielle Martin

Were a majority of the expenses relating to repairs to fix up the place? If yes - were they made to make the unit habitable?
If so - it is possible that those expenses should have been capitalized instead of expensed. If items are capitalized - the tax return shows less expenses(results in more income). You don't lose out on the expenses. It just written off during a longer period.
[email protected]917-280-8544
Basit Siddiqi CPA4.979 Reviews
View Page
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.