Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 8 years ago on . Most recent reply presented by

User Stats

228
Posts
43
Votes
Mark Gruetzmacher
  • Investor
  • Box Elder, SD
43
Votes |
228
Posts

Cost Basis before being in service

Mark Gruetzmacher
  • Investor
  • Box Elder, SD
Posted

Ok my understanding is that repairs and improvements to get a property fixed up so it can be put into service as a rental are added to the basis of the property per what the IRS says.  So with that said, I have a couple questions.

#1 -If you bought the property last year and did nothing to it because you didn't have the time so it just sat there, do you record it on your 2014 taxes and if so what do you record? It will need repairs and improvements before it can be placed in service, do you then add them in the next year?  If it is not placed in service yet, do you do anything?

#2 Different property, if you bought it last year and did repairs and improvements up through Jan. and Feb. of this year and then placed it in service this year, do you account for anything for taxes for last year?

Regards,

Mark

Most Popular Reply

User Stats

5,271
Posts
2,325
Votes
Steven Hamilton II
  • Accountant, Enrolled Agent
  • Grayslake, IL
2,325
Votes |
5,271
Posts
Steven Hamilton II
  • Accountant, Enrolled Agent
  • Grayslake, IL
Replied

Nothing for either except for property taxes which may be taken on Schedule A.

  • Steven Hamilton II
  • [email protected]
  • (224) 381-2660
  • Loading replies...