Need advice:

If starting a real estate holding corporation, can the company write off as an expense purchases to fix a property that it plans on buying?

Seems like an intuitive "no" to me, but wondering if anyone knows how it could be done. Thank you in advance.

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Erm, you talking like small tools or you talking bulldozers. It’s also going to vary depending on whether you’re talking about GAAP treatment vs tax treatment. Seems like you’d be well suited in getting an accountant if these are the questions you’re asking.

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Thank you -- this is helpful. More specifically, we're planning on upgrading flooring, paint, and light fixtures in a property we already own before transferring title and mortgage over to an LLC we plan to incept for our RE portfolio.

So, wondering if these types of expenses can be written off under the LLC if the asset isn't under the LLC's ownership yet?

Talk to a cpa but the tax system favors creators, and especially favored real estate development

There are really specific irs rules around which real estate expenditures can be expensed and which must be depreciated instead (as well as which ones can’t be counted at all) from mileage and travel costs to visit properties to major repair and construction costs. Pretty much everything is allowable in some form though if it’s spent to improve, maintain, purchase, or manage a property.

Are you fixing a building before you buy it or are you buying tools and crap ahead of time? If it’s the former, I have a house you could “buy”. It’s a bit of a fixer upper, but as soon as you fix it up I’ll sign the paperwork. It just might not be to you. Probably to someone else I sold it to for a lot more money than it’s worth today.

Yeah, def not doing that. It's a property I already own but am considering transferring ownership to an LLC.

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