Timing of listing - tax question : ezLandlordForms

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Timing of listing - tax question

David B

started a topic about 14 years ago

Hi All, I've been learning LOTS in the past couple weeks about my introduction to being a landlord (reading NOLO books). I have a couple questions which I can't find answers to. Hoping this community can help. First, a description of my situation. [----] I have owned and lived in my LA condo, since 2003. I am moving to SF early next year (Feb/Mar). I have been in the adjustable period of a 5/1 ARM for the past year. My rate is 3.0% and expected to be 2.7% on Feb 1. Before I rent my place, I have many upgrades to make. I was planning on not starting them until January so that everything is in the same tax year. - remove popcorn cieling (positive for asbestos) - replace broken oven and old dishwasher - replace sagging garden fence - install missing bdrm closet door - possible bath overhaul (not sure yet if crack in tub is serious, or repairable) - replace 2" faux wood blinds with aluminum blinds - repaint all walls - steam clean carpet [-----] With that in mind, I am looking to refinance this month with a 30-year, while rates are low, and while I can still claim it as a primary residence. Then the tax part. As I understand it, as a homeowner I can not deduct the above upgrade list from my taxes, but as a landlord I can. I will be doing these upgrades while I still live in my condo and before I rent anything in SF. Can I still take these as tax deductions? Your help/advice/suggestions are greatly appreciated! Thanks

1 Comment

Gregory M

said almost 14 years ago

I'm no expert but I don't think so. If you refinance as a home owner, you can write off points and application fees etc. But I am almost sure repairs are not tax deductable for a home owner. When you claim your property as an investment, you have to state when it became an investment, and must show income I believe. So based on my past experience with my CPA, you cannot claim repairs or upgrades until it is an investment property.