How can I deduct re-hab expenses incurred in 2014 to my tax return for 2013?
I bought a 2 family house on 12-20-13 using an IRA. Unfortunately, by having the closing of the house in the last week of last year seems to mean that
I bought a 2 family house on 12-20-13 using an IRA. Unfortunately, by having the closing of the house in the last week of last year seems to mean that all the re-hab expenses, since they were primarily done in 2014, cannot be used to offset this huge tax bill that it looks like I am going to owe. The IRA liquidation caused me to be bumped up to a higher tax bracket, and the taxes owed will be in excess of $17,000. That is just shy of the annual amount of money I make in my full time job started mid-year 2013. (I have a couple other smaller jobs too).Therefore most or all of what I make from the new 2-family will go to taxes for the next 2 years. I have worked so hard for this property so it could pull me out of poverty, but it seems to be pushing me back in!!
If I have a signed lease from a tenant that starts in 2013, would that be enough to enable me to offset some of the taxes I am encoring because of the liquidation of the IRA and because of being in the new tax bracket, even though most of the re-hab was paid for min 2014?
or:I bought a 2 family house on 12-20-13 using an IRA. Unfortunately, by having the closing of the house in the last week of last year seems to mean that all the re-hab expenses, since they were primarily done in 2014, cannot be used to offset this huge tax bill that it looks like I am going to owe. The IRA liquidation caused me to be bumped up to a higher tax bracket, and the taxes owed will be in excess of $17,000. That is just shy of the annual amount of money I make in my full time job started mid-year 2013. (I have a couple other smaller jobs too).Therefore most or all of what I make from the new 2-family will go to taxes for the next 2 years. I have worked so hard for this property so it could pull me out of poverty, but it seems to be pushing me back in!! If I have a signed lease from a tenant that starts in 2013, would that be enough to enable me to offset some of the taxes I am encoring because of the liquidation of the IRA and because of being in the new tax bracket, even though most of the re-hab was paid for min 2014?
or:Ask a lawyer, it must be legally done.
