@rbyu wrote:
oh, Ok, so the net loss will offset next year's rental income. Thanks.
One last question, .... Depreciation i.e. Improvements are better to have or expensing all for the year. I am in the position where I can do either due to condition. I cannot decide to depreciate some items than expense all this one year. I know it depends on future plans, but I am asking as a norm. I hope this is not too lame to ask.
Thanks.
Uh, no. The current year rental expenses will offset the current year income for a net loss in the current tax year.
If you can expense the asset cost in the current tax year then do so and do not depreciate the asset. If you depreciate you will have to recover all of your depreciation as a capital gain in the year the rental is sold.
