Accountants and professionals are there for a reason and it's because the knowledge they have is their business and not yours which is fixing up old houses and renting them. One glaring lack of knowledge is the idea that the expenses are amortized over 15 years while amortization applies to intangibles and not real estate rental expenses or improvements.
1. If the properties aren't ready for rent, you can't deduct expenses but you can add improvements to basis.
2. Property taxes paid in the tax year are deductible on SCH A but subject to tax reform limitations.
3. No rolling up of expenses from past years where the property was not ready for rent but improvements can be added to the basis for depreciation.
4. Residential rental real estate is depreciated over 27.5 years not amortized over 15 years and the improvements are amortized over 27.5 years.
