@Fallow Thank you for sharing references to IRS Pub 527, super useful! OK I understood the following:
1. I can only deduct ordinary and necessary expenses after I make the property available. Since I'm already excluding the expenses I incurred before posting to the MLS and making the property available for rent, I think I'm OK on the list of expenses.
2. I cannot deduct loss of rental income i.e. the time period between 10/22 thru 12/15.
3. I can deduct all of my listed expenses as they fit ordinary and necessary definitions of IRS Pub 527.
4. I should choose cash basis method and thereby will not have any rent attributed to 2022.
Follow up questions:
1. Since I don't have any income in TY2022, against what I can deduct my listed expenses? Will these be the PAL (Passive Activity Losses)? If so, these can be carry forward to offset future rental income, correct?
2. How can I document the fact the first month's rent was paid as commission from the tenant to the realtor? Because, it is not logical to report no rental income when the tenant move in date is set as 12/16/22. Isn't?
