Tax question regarding STR and W-2 income

[Mitchell Maginnis]

Hi!

I am a new real estate investor. I am almost finished with a new build STR that will finish in May that I have paid all cash for. I own the land through an LLC with a partner. Since the build is not yet done, it has obviously not made any income.

I am a high income earner with a w-2 job.

Will I be able to write off the entire new build construction costs to put shield my w-2 income?

I realize this is probably a question for a CPA, but I am hoping someone has maybe tried the same thing here.

Thanks!

[Chris Picciurro]

Congratulations on the new property. CPA here and we talk about tax flow vs. cash flow all the time. Paying cash or getting a mortgage does not change the depreciation deduction. Your property needs to be placed into service before it can be depreciated.