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Updated about 4 years ago,
Purpose of buying crap house and holding for years? tax benefits
Hi! I own investment property that I rent out and take my write-offs, but I just use my CPA to do the paperwork/return. What are the tax benefits to holding empty properties that hold little value? It sold for $44K and would take 50K to fix up and even then value would be barely $125K. Taxes are $2,500K year.
Why I ask: There was a house on my old street that sold at a tax auction 4 years ago. the cape style home was picked through like you wouldn't believe (walls town apart to get to piping, windows removed) it was a shell of a house that sat empty for 4+ years bofore tax auction. Guy who bought seems to be a local property (rental) investor who also lives in a 1/2 million $$ home. It's been boarded up even since he bought it 4 years ago.
How do they justify holding it? All you could write off is property tax, lawn mowing and ????