Can I Deduct a Home Inspection on My Taxes?

Investors Can and Should Write-off Home Inspections.

There’s nothing more American than real estate investing and tax write-offs. Put the two together to live the American Dream and create generational wealth. Imperial Pro can help.

Even in the best of circumstances, buying a home can feel like a big money pit. Throughout the escrow process you need to fork over money for appraisals, credit reports, closing costs and of course the inspection – or multiple inspections – ordered. And while there are many tax benefits to owning a home, deducting the home inspection is not one of them, unless it’s an investment property. Take that, IRS.

Investment Property Expenses

When a property is not your residence or personal vacation home, it is considered an investment property. The pesky IRS allows rental property owners to deduct many more expenses than residing owners because it is a business. When buying an investment property, you must keep detailed records of costs that include mileage, professional fees, insurance and other operational fees. All income and expenses are recorded when filing personal tax returns on Form 1040, Schedule E.

So Why Aren’t Investors Buying Inspections?

Investors are proudly and rightfully 1) penny-pinchers 2) know-it-all’s 3) and simply don’t have the time to wait for an inspection. I understand all reasons expect for penny pinching, especially since the inspection is a tax write-off. Of course if the investor is going to flip the home, then what’s the point? The point is to get a second set of eyes on your big investment. The best investment that an investor can make is to get the opinion of a licensed inspector before purchasing a potential money pit.

What Would Services Could an Investor Write Off?

A tax write-off is a business expense that is deducted for tax purposes. A business expense, in my opinion, is a business investment. There’s multiple ways to deploy the services of a professional home inspector to help increase your return on investment (ROI).

Investor Inspections

If you don’t want to pay the price for a full home inspection, you don’t have to. Investor inspections are stripped-down home inspections focusing only on the major systems you need to know about. The inspection report is usually delivered immediately, easy to understand and is loaded with helpful photos.

Quality Assurance & Progress Inspections

Investors are swindled out of large amounts of rehab money far too often. Before you shell out money to your general contractor, hire Imperial Pro to provide affordable and professional quality assurance services. Imperial Pro will let you know the quality and the completion percentage of the work you hire us to inspect. You need the unbiased knowledge of a licensed home inspector on your side. Let your team know that you mean business.

Seller’s Inspections

Find out what the buyer’s home inspector is going to find before you put the home on the market. This will help prevent any frivolous repair request or price reductions that will hold up the real estate transaction. Flip homes are almost always full of deficiencies according to standards of practice set forth by the Texas Real Estate Commission. Clean report = happy buyer.

Rental Home Inspections

Why wouldn’t you have your rental properties inspected after your tenant leaves? These inspections are imperative for maintaining your property and reducing your liability when your new tenant moves in. Have I mentioned it’s a tax write off?

Foundation Inspections

Foundation inspections should be utilized the most, especially with our expansive soils that lead to expensive foundation failure. We strategically measure the foundation’s elevations using our high precision ZIPLEVEL® altimeter. These measurements can immediately identify critical foundation issues and we will let you know if the foundation is performing or potentially need repair.

Investment Consulting

No report. I’ll meet you on site and we can walk through your potential investment property together. Ask me a question and I’ll give you my opinion.

Termite inspections

Termites are just as common as foundation issues but termite issues are missed more often than not. If a home is not protected, there is about a 70 percent probability that it will suffer some termite damage within 25 years.

Houston Area Home Inspections

Partner with Imperial Pro before you buy your next investment property. Imperial Pro will help you quickly understand the condition of the property you are about to buy. Maybe there’s a service you need that we haven’t thought of yet? If so, let us know.

Imperial Pro’s home inspections are the most utilized service that realtors, home buyers, sellers, investors, flippers, contractors, landlords and homeowners need the most in the greater Houston area. We offer our clients the value of our unbiased industry-leading inspections that our clients trust. Schedule your inspection today. #lovewhereyoulive

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