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Get your taxes done using TurboTax
Yes. You should check the box to indicate that the property was not rented in 2022. And you cannot deduct any rental expenses in 2022.
In general, remodeling costs are improvements which are not expensed but capitalized and depreciated.
The IRS says in this publication:
Repairs and Improvements
Generally, an expense for repairing or maintaining your rental property may be deducted if you aren’t required to capitalize the expense.
Improvements.
You must capitalize any expense you pay to improve your rental property. An expense is for an improvement if it results in a betterment to your property, restores your property, or adapts your property to a new or different use.
So in your case, for 2023, you should enter the remodeling cost as an asset to be depreciated.
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