Rental property tax question:
When I bought a rental house in 2022 (value of 250k), I was given 2 credits:
- 7.5k credit for repairs
- 5k credit for 2021 taxes
I paid these repairs and taxes later in the year to the repair people and the county. And I’m putting these costs into deductible expenses. Should I therefore lower my home purchase price to 237.5k instead of 250k? Else I am in a way double counting these in both purchase value (later depreciation) and annual expenses.
Thanks!!!

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You wouldn’t lower your purchase price for repairs/maintenance, those are expensed and not deducted from market value if they home.

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Hire a tax accountant

You don’t need a tax accountant for that. Unless you have some esoteric expenses, just look up the allowable (tax) expenses for properties. Deloitte 1 is right.

Thanks all! D1 and PwC1, but they weren’t really my expenses. Seller de facto paid for them by giving me a credit upon close. What am I missing?

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