Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
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 almost 6 years ago on . Most recent reply

User Stats

1
Posts
0
Votes
Stephen Kupferschmid
  • East Moline, IL
0
Votes |
1
Posts

Depreciation vs. Deduction. Did I miss out?

Stephen Kupferschmid
  • East Moline, IL
Posted

In December 2017, I purchased what I wanted to be my first rental property.  Bought and paid for it with $30k.  I have done all of the repairs myself, and intended on having it available for rent in the summer of 2018.  Well, here I am and still working on it.  I have put about$15k in repairs/updates to it so have almost $45k into it.  I now hope to have it rented Summer 2019.
My question is, would I have been better off renting it out for a couple months for real cheap since it was in rough condition (say $250/mo) and then started working on it so I could have deducted the expenses in the 2018 tax year?  Or am I better off just doing it as I have, and adding to my cost basis for depreciation.   I have also accumulated $3k worth of tools.

I'm also figuring the power of depreciation is not as great as deducting in the current year as depreciation recapture will take place in the event the house is sold down the road.  For what its worth, this situation assumes I am married, with no kids and have a household AGI of  $120k.  Thank you!

Loading replies...