RobertB4444
Expert Alumni

Get your taxes done using TurboTax

The most important words in the rules about rental property are 'available for rent.'  The day your house went on the market looking for a renter and was move in ready is the day that it officially became a rental property and stopped being your residence.  Expenses before that date were improvements to your residence and not deductible.  Expenses after that date are work on your rental property and fully deductible.

 

The same goes for utility bills and the like.  That's why your insurance is prorated.  While it's true that you wouldn't have made the repairs to your residence if you weren't going to rent it it is equally true that the repairs prior to the house being available for rent increased the value of the home.  So those repairs are added to the value of the house for purposes of depreciation and not expensed.

 

For people who want to have a rent home for the entire year the 14 days of personal use rule is in effect.  If you use it as a personal residence for more than 14 days you have to allocate expenses.  Which you are already doing and which TurboTax will absolutely be able to calculate for you.

 

@smilgrom79

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