ErnieS0
Expert Alumni

Get your taxes done using TurboTax

Probably. I'm assuming you formed a partnership because you say "I started an LLC with another household."

 

Every domestic partnership (with certain exceptions) must file a partnership return, unless it neither receives income nor incurs any expenditures treated as deductions or credits for federal income tax purposes.

 

You would capitalize your expenses (meaning you would add them to the cost of your property). You'll been able to deduct the purchase price plus improvements against the sale price to reduce your taxable gain.

 

See Alumni Tax Expert @Coleen3's answer in How do I treat rental property repairs before placing it into service?

 

You may have some deductible operational expenses for the partnership.

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