Pre-rental taxes can be an itemized personal deduction (Schedule A) if you don’t exceed the $10,000 state and local tax limit.Expenses incurred to get the property ready for rental, but before it is actually available for rent could be added under startup cost and can deduct up to$5,000 in the first year, if total start-up costs are $50,000 or less. 

I would think they are either mandated to fix those items or you can back out of the sale and get your EMD back. 

Rick, I think online permits are limited to the items below that I pulled off the website: Request Electrical & Plumbing permit for new or replacement electrical & plumbing for single family/duplex homes

So for the first item on the balance sheet you put the purchase price and then for the WIP item you add all purchase closing costs, reno/holding expenses, sale closing costs and then finally put the sale price as revenue?  

So I have a FixedAssets account in the chart of accounts, but that's not really usable for tracking the per-item depreciation...there's no entry for when it was placed in use, no way to state depreciation lifetime, nothing that ties loan points to the loan so you notice when you refinance that you should take all the rest of that line item as depreciation immediately, etc.

Also, you'll eventually have cap ex (big items) to pay for and those costs are only going in one direction, up. 

@Adria T. the PM company has to communicate, get a tenant in quickly and be able to handle items that are unforeseen..

Hi Varun,I've been investing and owning in the DFW markets since 2012, and foundation work is a common maintenance item. 

I assume you keep the capital gains/depreciation itemized.

And make sure that all items necessary for you to get the best rate possible from your carrier (like 4 point inspections, roof attachment points, pool enclosures etc) are present or available.One nasty little factor that can't be helped is that every time you buy a property for more than than last owner paid - you will have a tax bump due to re-assessment.