Aurelian tax blog
Buying before year end
The write-off starts the day the property is live and bookable, not the day you close. To claim it this tax year, work back from the last day of the year.
The short version
Plan about 7 to 8 weeks from the first call to a home that is furnished, listed and taking bookings. Later than that, plan it for next tax year.
The timeline
- Week 1Call with Derek and his team
- About 3 weeksUnder contract
- About 3 more weeksClosed
- About 10 days after closingLive and bookable
- From go liveYou run it and log your hours
Typical times, not promises. Go live earlier and you have more time to log hours.
What has to be true by year end
It has to be live this tax year
Closed, furnished, listed and bookable. Closing alone does not start the write-off.
The hour tests are not prorated
A short first year still needs the full test. Late buyers often meet it by doing substantially all of the work.
Log from day one
Date, task and time, for you, your spouse and every cleaner.
Keep the stays short
The 7 day average comes from that year’s actual stays. In a thin first year, one long booking can break it.
No personal stays
Personal use over 14 days, or over 10% of the days rented, breaks it.
Order the cost seg after closing
It can be finished after the year ends, before the return is filed.
Two things to check before you sign
- The yearly loss cap. It limits how much income the write-off can offset this year. How the cap works
- Your state. Some states follow bonus depreciation and some add it back. State by state rules
Want to see your own numbers? The Aurelian calculator adds your state and the yearly cap.
Educational, not tax advice. Tax rules change and depend on your income, filing status, hours, how the property is used and your state. Nothing here is a promise of any deduction or tax result. BNB Portfolio is not a CPA firm, law firm, real estate broker or lender. We work with licensed agent partners and CPAs.