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.
General Landlording & Rental Properties
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 15 years ago on . Most recent reply

User Stats

60
Posts
22
Votes
Silvia B.
  • Auburn, GA
22
Votes |
60
Posts

Rental "start-up" deduction info needed

Silvia B.
  • Auburn, GA
Posted

I am still alittle confused about the $5000.00 allowed "start up deductions". Maybe someone here has the answers:
This will be the first home that I will rent out. I just bought it as an REO and am waiting for escrow to close.
I think that paint and basic repairs fall under this section BUT If I want to replace some carpet, replace stove and some light fixtures that are broken these do not seem to fall under the "start up" deductions (or am I wrong).
I have heard that you must advertise that the home is available in order for these things to be deemed "operating expenses". But how do you advertise that the home is available for rent, thus allowing you to take improvement depreciation, if it is not truely move-in ready? I'm confused. I can also afford to have the home vacant but I would like to get the best tax break available also. How do I to work through this? Thanks for any info.

Loading replies...