No, unfortunately you cannot deduct the preparation expenses you incurred in a prior year before the rental was placed in service. You can add the costs to the basis of your property, which can be deducted as depreciation.
Per the IRS: To figure your property's basis for depreciation, you may have to make certain adjustments (increases and decreases) to the basis of the property for events occurring between the time you acquired the property and the time you placed it in service for business or the production of income. The result of these adjustments to the basis is the adjusted basis.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
