Tax question: Bought a rental property on 12/31/2017...

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sillysaver
Posts: 154
Joined: Thu Oct 08, 2015 5:24 pm

Tax question: Bought a rental property on 12/31/2017...

Post by sillysaver » Sun Oct 07, 2018 10:16 am

Should I bother entering any of the basis for depreciation in 2017? We received no rental income until this year. Can we start taking depreciation in the following year without "losing" any?

We are not real estate professionals, and we are subject to passive loss limitations.

clydewolf
Posts: 733
Joined: Tue Jul 21, 2015 12:51 pm

Re: Tax question: Bought a rental property on 12/31/2017...

Post by clydewolf » Sun Oct 07, 2018 5:17 pm

The rental that you purchased on 12/31/2017 available for rent on that day? You must have the property available for rent before you can take depreciation. Otherwise it is just personal property.

Point
Posts: 113
Joined: Mon Jul 10, 2017 9:33 pm

Re: Tax question: Bought a rental property on 12/31/2017...

Post by Point » Sun Oct 07, 2018 5:25 pm

You may want to have this book on hand by Nolo: Every Landlords Tax Deduction Guide

togb
Posts: 142
Joined: Mon Oct 23, 2017 8:36 pm

Re: Tax question: Bought a rental property on 12/31/2017...

Post by togb » Sun Oct 07, 2018 10:48 pm

I'm pretty sure you can deduct some of your closing costs. Check with your tax advisor to be sure.

SRenaeP
Posts: 774
Joined: Tue Jan 19, 2010 9:05 pm

Re: Tax question: Bought a rental property on 12/31/2017...

Post by SRenaeP » Mon Oct 08, 2018 8:14 am

togb wrote:
Sun Oct 07, 2018 10:48 pm
I'm pretty sure you can deduct some of your closing costs. Check with your tax advisor to be sure.
The OP should read IRS Pub 527. Some closing costs should be included as part of the basis (therefore, able to be depreciated) and others are considered expenses.

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