Taxes For Rehab
Ok Here goes:
Bought a fixer upper 29Jan04 for 31,000. HML gave me 6,000 of repair money for escrow and I put in 7,000 of my own money. I plan on doing 2 more this year. My question is when I go to do taxes next year, can I claim all of the repair cost as a loss, only the portion that actually came out of my pocket or none of it? It seems thats the IRS would be throwing red flags up after you do this a couple of years because you are always "claiming a loss:. Even though I would be getting my money back on a refi loan.
Thanks,
Tim
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