Writing off rehab expenses!
Can I write off expenses/losses that occur when I rehab a house. This is all being done under a LLC.
I buy a distressed property for $50,000. I then spend $20,000 fixing up the property which raised the value to $80,000. I keep the property and rent it out. I have no plans on selling anytime soon. Can the $20,000 be claimed as a loss.
Does anybody have any experience with this?
You can write off expenses associated with the repairs of your investment properties.
How they are written off depends on what repairs were completed?
Some major repairs are supposed to be depreciated over several years - You still get the write off, but over time.