Tax writeoff rennovations on a duplex with a FHA loan?
I recently purchased a duplex and in order to do so I used an FHA loan. The FHA loan requires me to have one of the units as my primary residence for a minimum of 1 year from my move-in date. I plan on moving out as soon as the year is up so I can rent the entire duplex out to collect income off of it. Since I reside in one side can I only expense the depreciation of 1/2 the purchase price over 27 1/2 years within the first year? Is there a way that I can depreciate the entire purchase price after I move out and rent out both units? Also if I want to make "regular" maintenance rennovations to my side (paint, siding, drywalling, carpet, etc) within the first year I am living there is there any way that I can expense that off of my income?....I read this in an article regarding a question kind of similar to mine: If a paint job is part of a major remodeling of the entire property, it -- and the rest of the remodeling -- would be treated for tax purposes as a capital improvement. That means the expense would have to be depreciated over a 27 1/2-year period, beginning when the project is completed. Can I declare my major remodeling of the entire duplex starting this year, keep all of my receipts for the entire remodel and then declare it completed the day I move out and its rented to someone else and expense everything after that? I am hoping there is a gray area or crack I can slip through in the ruleing on expensing rennovations I do this year, as it is much easier to do them while im living there. Any help on this is appreciated.....
Asked By: - 12/22/2011
Best Answer - Chosen by Asker
I would suggest a consultation with a local CPA or EA who specializes in small business taxation with some emphasis on rental properties... More
Answered By: Bash Limpbutt's Oozing Cyst© - 12/22/2011
Additional Answers (3)
You can start including expenses for your side once you move out. If you move out in Nov or Dec then it is only 1 or 2 months worth. Any improvements done before you move out may be added to your basis. General maintenance on your home is not deductible.
Answered By: Cathi K - 12/22/2011
No, you can't "declare" anything into the Internal Revenue Code... More
Answered By: mrreliable3599 - 12/22/2011
what you do while you are living in it is 'living expenses' and not deductible... More
Answered By: tro - 12/22/2011
Local Jobs Are Paying $18-$94/Hour-Get Hired Today. Apply Now!
Find Local Jobs Paying $17-$87/Hour- Available Today. Apply Now!
(86) Local Jobs Paying $18-$94 Per Hour- Available Today. Apply Now!
Over 483 Local Jobs Now Hiring In Your Area. $18-$87/Hr - Apply Today!
Other Career Questions
What jobs are there in the business field that are night jobs? Places and job titles please. Im have a BA in Business Admin and looking for a night job, already have a morning/day job.
Enumerate these jobs Say, patent application writting. patent application writing. In a company, what jobs are needed to keep confidential?
Content is not owned or controlled by Monster. Any content concerns should be addressed with Yahoo!
Yahoo! Does not evaluate or guarantee the accuracy of any Yahoo! Answers content. Yahoo! Disclaimer.
Best-Paying Work-from-Home Jobs
It’s easier than ever to work from home. Of course, not every job is a mobile job, and some companies aren’t interested in having their employees work from home.
2013 Marketing Jobs Outlook
The US may be facing another year of anemic hiring overall, but that won't be the case in the high-orbit world of multichannel, digital media marketing.
2013 Engineering Jobs Outlook
Engineers will find job opportunities in select disciplines in 2013, with candidates who are all-around, client-oriented businesspeople in demand.
Best-Paying Jobs by Major
What could you earn with a particular four-year degree? Find out by checking out this list of the top-paying jobs for 20 of the most common majors.
Eight High-Paying, Secure Jobs
Want to earn a good salary and enjoy a measure of job security as well? Check out these well-paying jobs on tap for fast growth in the coming years.