All Forum Posts by: Account Closed

Awesome! Thanks for the excellent (and very similar) answers. In my line of work, I'd call that corroborating evidence and would place a very high value on it. 

Gotta love how positive everyone on here is.

Newbie here and appreciate all the input and advice I've been passively soaking up.

I have a question about what tax benefits through depreciation are available to the real estate investor who purchases properties for very little money (under $10,000). Such a property would require extensive renovations and this is where I think I can make my start in REI as I'm very handy and industrious. So if the house sale price at a tax sale was $5,000 and I sink in $25,000 in actual renovations (sweat equity doesn't compute here), what am I entitled to depreciate on my taxes once it's all said and done?

It seems there could be three options: 1) depreciate only the purchase price of the home. 2) depreciate the purchase price of the property and the actual renovations. 3) depreciate the appraised value of the home after renovations.

I'm just looking for a general answer for what others have done. I'd be sure to ask my CPA at the appropriate time when it comes time to put numbers on tax forms. 

Thanks a million in advance!