JudyB
Level 3

Client has expenses in 2021 for purchasing investment property which did not close until 2022.

Where can i take these expenses this year. 

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Terry53029
Level 14
Level 14

Start up expenses (up to $5000 in year available for rent) Balance up to $50000 amortized over 15 years.

See link for easy reading, or pub 535 for official rules.

https://www.nolo.com/legal-encyclopedia/deducting-expenses-you-incur-before-your-real-estate-busines...

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qbteachmt
Level 15

You had already asked this, here:

https://proconnect.intuit.com/community/tax-talk/discussion/real-estate-investment-deductions-for-re...

This is not Customer Support; it's peer users. There is no need to keep starting new topics on the same issue. I flagged your first post on this issue to be deleted.

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"Level Up" is a gaming function, not a real life function.
sjrcpa
Level 15

Or, depending on the nature of the expenses, they get capitalized as past of the cost basis of the property.


Ex-AllStar
sjrcpa
Level 15

In the other post OP said they did not buy the property. I was in no mood to research failed/abandoned investment costs.


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JudyB
Level 3

Thank you. I will look it up this way. Appreciate your answering

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