Building a short-term cabin. Tax benefits for 2021?

[Taylor Klein]

I am new to Short Term Rentals and working with a partner to build our first rental cabin. How can I still benefit from taxes for 2021 if our cabin won't be done until 2022?

Quick background: My partner is fronting the cash down payment and taking the loan in their name. We are 50/50 splitting the construction loan during the build process and following construction the 2nd home mortage. 

Timeline: 

- Starting build process September 2021

- Completion date May 2022

Do we pay the construction loan and all expenses out of the LLC in order to have a 2021 write-off? Any ideas on this scenario would be very helpful. I will chat with a CPA as well. Just hoping for some guidance. 

[Wayne Brooks]

“Building the house” is not a “write off” in itself….the total costs get depreciated over 27.5 years. Some holding type  costs could be “expensed”.