I live in NH. In 2022 I sold a large land parcel in ME, and bought a property with a house in TN, I did a 1031 Exchange.
During the exchange a trip to NC & TN was made to identify properties.
A trip was made to TN to do a thorough day long property inspection & remediation estimate.
A trip was made to TN for the closing on the purchase.
Painting and flooring was hired out.
A trip was made to TN to furnish and decorate the entire house.
A company was hired to advertise and list the property for short term rentals.
The forms and documentation for that 1031 Exchange (Form 8824) were straightforward as to what was an exchange expense, so no questions there.
For the Schedule E I've read a ton of IRS pages and docs, at well as numerous other online articles, but I get mixed messages and or unclear meaning as to what of the above trip costs are reported where. What is a deduction and what is capitalized? Can I lump all the furnishings and decor together? Are the dishware and linens treated same as the furniture?
I knew this 1st year would be hard but I've been doing a Schedule C for my wife for years so never expected this level of difficulty.
