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Where do I deduct 2020 SMLLC expenses if the rental property closes in 2021?

SeA3106
Level 2
 
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sjrcpa
Level 15

If the new rental property is the only activity of the SMLLC you do nothing with them in 2020. They are startup and/or organization expenses or they will add to the basis of the property.


ex-AllStar

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sjrcpa
Level 15

Do you mean a SMLLC formed in 2020 incurs expenses in 2020 to buy a rental property, but the property is not acquired until 2021?


ex-AllStar
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SeA3106
Level 2

Yes, that's the situation I'm referring to.

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sjrcpa
Level 15

If the new rental property is the only activity of the SMLLC you do nothing with them in 2020. They are startup and/or organization expenses or they will add to the basis of the property.


ex-AllStar

View solution in original post

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