Tax, SDIRAs & Cost Segregation
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated about 11 years ago, 11/07/2013
tax write offs
Newbee investor, I purchased my first investment property the first week of January this year. The property was a house which was never completed. I should have the house completed in approximately 4 months. My plan is to have this house for many years (probably 20).
I understand that money I put in the house (materials, labor, etc...) are deducted by depreciation over time, but I was curious how about items that pertain to fees for permits, septic/well work done, yearly insurance/taxes, etc....
This year this is what I have put into this property and I have had zero rental income because the property is not rented yet:
fees that are not improvements to house
1. 12k in loan fees on the mortgage
2. $3200 in property taxes
3. $2000 community road fee (they happen to redo the roads the year I buy this house).
4. Approximately $2k dollars in fees to get permits
5. $1600 insurance on property/structure
Fees to land not house
1. new septic, drain field, well $22k
fees to improve property by the end of this year will total approximately between 30 to 40k dollars.
Just want some ideas of tax stratagies, is it best to get a real estate CPA or could I use tax software to figure out what can and cant be written off.
Any help will be appreciated