Hello,
I appreciate any insights on how to report the addition of a new rental property for our portfolio during the 2024 tax year. Here are the details.
- We purchased a property in another state in March 2024.
- We bought it sight unseen (but had family assisting us with the inspections).
- The intent was to operate it as a mid-term furnished rental for traveling nurses.
- We saw the property in person in April 2024 after flying in to start fixing and furnishing.
- After our assessment, we determined the property was in need of significant renovations.
- It sat vacant until we could arrange financing to cover the renovations.
- We began the renovations in July 2024 and the renovations lasted until late Dec 2024.
- We stayed in the property during the renovations so we could complete as much of the work ourselves as possible.
- The first tenants moved in February 2025.
My question are summarized below.
- How and when should I report the ongoing renovation costs?
- Do I add this property as a rental even though there is no income to report?
- Should the reno costs be filed with my 2024 taxes?
- Or should I wait to expense the reno costs in 2025 when I have income to offset it?
I looked for similar posts, but was not able to locate any thing similar. Thank you for any advice you may be able to offer.
