Legal Question in Real Estate Law in California

First, California law follows Federal law (the Internal Revenue Code) very closely as to what is deductible and what isn't. Not exactly the same always, but close enough so that if you know what's deductible under the IR Code you pretty well know the California answer too.

Next, be careful about using the term "tax write off." Writeoffs and deductions are not the same thing. This can be a source of confusion. There is a pretty good discussion of this at the following link:

http://hubpages.com/hub/Self-Employed-Tax-Deductions-Write-Offs

I think the answer will depend upon whether you are going to operate the acquired properties as income property, i.e., is this a business for you, or are you buying the property for your own use.

If you are operating the property as a business, receiving rent from a tenant, etc., money you spend to improve and repair the property up-front may either be a capital expenditure or an operating expense. Making a proper distinction is probably more in the field of accounting rather than law, but in general, additions and long-term betterments like adding a room or replacing iron pipe with copper should be capitalized rather than deducted, and the increased book value thus created will be deducted as increased depreciation. On the other hand, maintenance and repair not resulting in an addition or true betterment - such as repairing the iron pipe - can be deducted fully in the year the work is done (and paid for).

However, if you are NOT operating the property as a business, but are either living in it yourself or holding it, vacant, for some purpose, you can't deduct or "write off" anything. Instead, additions and betterments are added to your basis, so that when you sell, they reduce your capital gains dollar for dollar and hence your capital-gains tax is lower.

I hope this is helpful, and I recommend you see a tax consultant.