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Updated over 6 years ago on . Most recent reply

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64
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Andrew Giunta
  • Paramus, NJ
14
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64
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What tax benefits do I get if I buy and fix an abandoned building

Andrew Giunta
  • Paramus, NJ
Posted

I am looking at an 8 unit abandoned building that is dirt cheap and it is completely boarded up. I would be fixing everything and then renting out the property. I read a while ago that there were tax benefits to restoring an unusable property to a state of use. What are those benefits? What major things can I write off and not write off when doing this? Thanks so much!

Most Popular Reply

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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
13,508
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23,418
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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
Replied

If it’s not in some special historic or other rare special incentive zone, not much.  Your repair and renovation costs simply get added to your purchase price and depreciated, mostly over 27 1/2 years.  Your carrying type costs....insurance, utilities, property taxes, etc. can be deducted as expenses, as you go.

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