Question

purchase & rehab multi-unit

Forum|Forum|6 years ago
January 27, 2020
1 reply
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We purchased another duplex in 2019 that was vacant and needed work. 1 unit was ready and rented by March. The other took until August. I know the repairs done prior to renting should be added to the cost basis for the property --- how should I input the property into turbotax however? One property but two separate depreciable units with their respective starting dates? Or two separate properties?

M

MinhT1

I recommend that you create 2 properties which different rental start dates, each with its own cost basis. If the units are equivalent, you can split the cost basis equally between the 2 units. The improvements will be added to the cost basis of the second unit.

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