Scenario
- I purchase a property in October of 2022 for the purposes of renting it.
- I spend quite a few months fixing/rehabbing it and making it suitable for renters
- It is made available for rent in March of 2023
- It is leased up in May of 2023 so the property has had no actual rental income for 2022 because it was being rehabbed..
- For the purchase, and during my time holding it for the last few months of 2022 I paid mortgage interest, origination points on the loan, home owner taxes, utilities, etc.
Question:
When can I claim the expense / deductions for the funds spent in 2022 to acquire and hold the rental property while it was being rehabbed for rent? Do I take those deductions when I file my 2022 taxes or do I take those deductions when I file my 2023 tax return since the property was not put "in service" until 2023 even though I purchased it and had expenses in 2022?
