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Am looking at buying a SFH in a 2 family home zone, and converting to 2 units. Once upon a time I remember something about being able to deduct capital improvements in the first year as expenses. Am I recalling that correctly/still a thing, or do I need to simply add to the total value of the home and depreciate?

IP
works either way
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It depends. I would suggest asking your tax advisor about Sec 179 deductbility.

AJ
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Thanks for the reference to Sec 179. Looks as though if we were to buy a SFH and convert to a duplex, we would have to depreciate the construction costs, since it is still a residential property, but be able to write off things like a washer/dryer and furnishings if we decide to make it a furnished rental, or in other words anything that would be considered "inclusions" in a purchase and sales agreement. All of this would be subject to the limits of our income for our property for that year, but the remainder can be carried over to the next year to be applied to that income?

Looking at how to set up a profit projection spreadsheet to analyze purchase, so strategic planning rather than filling out tax forms.

Sound about right?

IP
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