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Updated over 6 years ago on . Most recent reply
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What tax benefits do I get if I buy and fix an abandoned building
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!
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- Real Estate Professional
- West Palm Beach, FL
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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.