My wife and I are residents of New Mexico. We bought a vacation home in Oregon in 2021. During 2022 we spent about $20K remodeling the basement of the Oregon vacation home because we will rent it out on a full time basis starting in December of 2022 or starting in January of 2023. We know we need to report the rental income and can deduct operating expenses after the renter moves in. Can we deduct the remodeling expenses on our 2022 return? Does it make a difference if the renter moves in December 2022 or January 2023?
