If it is $10k in repairs, then you tax basis is $120k, and you have an overall loss of $10k using my example above (unless these repairs have been deducted as repairs)not all of your $10k closing fees count as tax basis.

You might consider a deposit to cover the deductible if he crashes but frankly what you do probably depends on what the car is worth. you could have a you break it you bought it policy.  

@Rafael PenaYour best bet is to self-educate about what tax deductions are potentially available (e.g. home office).At $50k of income, you're probably not currently a good fit for most tax professionals out there.

Hello CPAs I was hoping you can quickly answer this for me so I can pull the trigger on a few things or if I need to wait until January...So I I am under contract for a new construction investment property single-family home that closes late January 2021 and I already paid earnest money last month.My next step is to buy a fridge for the property for the renters and also a BiggerPockets Pro membership so i can start using the extra features of the platform.However, do i wait to do these purchases until 2021 to use as a tax deduction since my home won’t be closing until Jan 2021?

Now im deducting rent to fix it.

Also, depending on the State, Loss Assessments Coverage is becoming more important, as legislation to allow The Associations to raise deductible responsibility to unit owners for damage originating in their unit has been passed.

I spoke with my insurer and the way the current policy is structured (homeowners), it covers the two-unit as if one unit was rented and the other one was owner-occupied with full replacement cost on the dwelling (loan requirement), private structures, personal property, personal liability, medical payments to others and loss of use, replacement cost on contents (personal property loss), tenants relocation expense, back up of sewer, drain and sump pump coverage ($500 deductible, $5K limit)

Say you spent $100k.3) Since cash based accounting method, record that as a loss for that year (assuming you didn't sell it that year).4) Since you incurred $100k loss, then deduct that from your income for that year.

@Daniella SteinbergWhat are you trying to achieve by giving your LLC a loan.On one side you may have a passive deduction that may be suspendedThe other side, you would need to report interest income.

@Travis BoboYou have to follow the interest tracing rules.If you can show that you used the proceeds from the refinance of your personal home towards the purchase of an investment property, a portion of the mortgage interest for the refinance should be deductible.