We have a rental that we had to renovate after the tenant moved out without notice. We collected 10 months of rent and had a lot of expenses to get it in good order. I have all of the expenses categorized, organized, and totaled, and when I put them in Turbo tax I noticed that my Federal Refund went down every time I put in the next category.
At the very end it said that I did not get credit for all of the expenses because the rent was below median market rent for the county. I went back through and removed all of the expenses, and my refund went up by almost $300. I have never had this happen before. Yes, we had 2 fewer months of rent, and it was a little below market rent because we had the same tenant for many years. However, when I expense nothing of the renovations, I have a higher refund?
