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Updated about 11 years ago, 11/07/2013

User Stats

20
Posts
0
Votes
Kevin Macdonald
  • Real Estate Investor
  • Maryland
0
Votes |
20
Posts

tax write offs

Kevin Macdonald
  • Real Estate Investor
  • Maryland
Posted

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

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