BRRR method and taxes

[Samuel Connor payne]

I purchased a property this year at 170k and put 30k of rehab into it. The new appraisal came in at 280k and I’m going to to have a new loan at 210k with the rest going to be a cash out refinance. My question is, is the 30k rehab able to be wrote of as an expense? Do i added the 70k as income?

[Aaron K.]

The $70k is not income because you haven't sold the property and triggered capital gains, The rehab depends on what you did, some of it is likely going to go in the depreciation column and be expensed over time, the rest is an immediate expense, talk to your accountant for more clarity on which is which.