These three scenarios have different tax treatments.
1. If you itemize, you can deduct mortgage interest, property taxes, and PMI (if applicable). It's best to enter the information into TurboTax and have the software figure out whether a Standard or an Itemized Deduction is best for you.
2. You will record income and expenses from Rental activity on a Schedule E (unless you provide services to your tenants).
3. You will add up all the costs of construction and enter it in the software as a fixed asset in the year when the property is available for rent.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
