Home Buying in Bradenton>Question Details

Zoe Sharrona, Home Buyer in Fort Lauderdale, FL

This may be a question for a tax attorney, but I'm hoping a realtor would know.

Asked by Zoe Sharrona, Fort Lauderdale, FL Wed Sep 19, 2012

We are buying a condo in Florida to live in while we look for a home. When we find the home, we plan to rent the condo. Can I deduct the cost of improving the condo as a business expense, since I plan to rent it? Should I wait until we are not living in it to improve it so that it won't be considered a primary residence?

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Answers

9
Good morning Zoe,

You definitely should consult with your tax professional. As a rule we Licensed Loan Originators are required to defer questions of this nature to a tax professional.

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528
0 votes Thank Flag Link Thu Sep 20, 2012
Hello and thank you for your question. You assumed correctly. Realtors are not allowed to give tax, investment or legal advice.

As you may be aware, there are many great real estate agents in our area… Rather than having all of them answer your question over and over here on Trulia – you might want to consider contacting a qualified real estate professional that you trust who can help you with all the details

If our team would be so privileged to earn your business, we would be thrilled to help you…

Trish Chandler, REALTOR, CDPE
Michael Saunders & Company
941.306.9533
Email: trish@trishchandler.com
Website: http://trishchandler.michaelsaunders.com
0 votes Thank Flag Link Thu Sep 20, 2012
You are right, your tax adviser or attorney will know what your long term investment or wealth building strategy is and the infrastructure already in place with which to work.
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Your consultant will advise regarding the ownership structure that will best suit your objectives.
Welcome to the Sunshine State.
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Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
0 votes Thank Flag Link Thu Sep 20, 2012
I believe you will need to wait till you've bought a home to improve the condo and deduct it as an expense. I would call my accountant if I were you to confirm this.
0 votes Thank Flag Link Thu Sep 20, 2012
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To avoid possible conflict, especially if you plan to homestead the condo, I would wait until actually purchasing another property to start doing improvements to the condo as an investment property.

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100% LTV- USDA/12 mo. into Chapter 13 BK is OK!
100% LTV- VA/can pay off debts on purchases too!
99% LTV- FHA

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95% LTV- No PMI
95% LTV- CONDO
90% LTV- No PMI-2nd Home
90% LTV- JUMBO w/cc

85% LTV- NO PMI to Super Jumbo
80% LTV- Invest. Prop.

STATED INCOME ALT loan programs: http://www.StatedIncomeAlt.com
80% LTV- FIX n’ FLIP Invest. Prop.
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Steve McRory
Pro Option Mortgage/Florida
http://www.pro-option.com
steve@pro-option.com
Ph: 888 662 4404

Prior Service U.S. Marine Corps
===
0 votes Thank Flag Link Thu Sep 20, 2012
Hi Zoe,

As the others have stated this is definitely a question for a tax attorney. When you speak with them be sure to give them all the details of what you wish to accomplish.

I would be happy to assist you in finding a condo and a home. Please contact me directly if I can be of further service.

Nadine Mauro
Highlight Realty
561-414-0864
NadineSellsHouses@gmail.com
http://www.floridahouseseller.com
0 votes Thank Flag Link Wed Sep 19, 2012
You are correct. This is a question for your tax professional.

While many of us might know the answer, as it applies to us, we are in no way licensed, nor qualified to answer the question for you.

Sorry.
0 votes Thank Flag Link Wed Sep 19, 2012
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
Congratulations on becoming a real estate investor! Your question is a good one...none of us (Real Estate agents/brokers) can give you tax advice - BUT we can direct you to usable resources so that you get as much information as you need to make an informed decision. As an investor myself I like to have a clear line - a demarcation between personal property and investment property, so I do not ever improve a property while it's my personal residence unless it's something I WANT to have while I'm there. Best to be able to clearly define what is personal/principal residence and what (and WHEN) is investment property. This might help you and is good reading in general if you are becoming (or already are) an investor - or maybe if you just can't fall asleep! IRS publication 523 can be found at the link I have provided below.

Best of luck to you!
Thanks and take care,
Karen Schwartz, Broker
941-730-3550
KarenSellsSRQ@aol.com
facebook.com/KarenSellsSRQ
0 votes Thank Flag Link Wed Sep 19, 2012
Don't simply rely on online information; when it comes to any tax related information, it's always in one's best interest to consult with a tax professional, and or, tax attorney....
0 votes Thank Flag Link Wed Sep 19, 2012
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