Unsold property expenses - put on personal 1040 or under business

[Rashid S.]

Hi Guys,

I am not looking for a CPA level advice but just looking to know the basics to vet out CPAs when i go talk to them.

I started in real estate last year. first property i bought at auction with cash was under my personal name since my s-corp (with a biz partner) wasn't setup yet. All future properties that i bought/sold and currently holding are under the s-corp.

This first property is still on the market and has had about 20k in repairs (between the two of us, i have most cc/check receipts of it). My biz partner is fine with me taking 20k as deductions if possible. Would it be possible to take these expenses as deductions under my personal 1040? Are there any restrictions/limits if so (like AGI limits etc). 

Thanks

Rashid

[Chris Soignier]

For what you're trying to do, the repairs would be capitalized, increasing your cost basis in the property.    Therefore, you can't realize the tax benefits from those expenditures until you sell the property.