Even after reading publication 527 it is not clear to me how these expenses would be treated. Home purchased late Nov 2023 for purposes of renting it. It will be available for rent starting in Jan 2024 as some repairs are being done. I understand expenses prior to the in service date are not deductible, but would they be added to basis? Here is the list of costs I would need advise on classifying them. Again this would be for costs incurred in the month of December 2023 prior to the property being available for rent on Jan. 1, 2024.
1. Mortgage interest
2. Property taxes
3, Repairs (plumbing approx $1K)
4. Fire alarms
5. Other small repairs
6. New Refrigerator $600
7, Remove old fence and install new one $3K
Would any be deductible?
For those that would be capitalized, would they be added to the basis of the home and depreciated over 27.5 years? Or would they follow the depreciation convention for the respective appliance/improvement?
