Hello. I am a real estate professional actively engaged in business. I inherited a condo in 2022 and throughout 2023 I personally made both improvements and repairs to the property. I also had less income than expenses in 2023 - i.e., the repairs and improvements exceeded my income by 25K.
So far I've heard from turbo tax and elsewhere conflicting information on how I can deduct these repairs and improvements. Some people say I can deduct them both and they will both be carried forward. Some people, say no I cannot deduct expenses/repairs that exceed my income. I believe the fact that I am a real estate broker allows me to carry these loses/capital improvements forward regardless of my income in the year of renovation.
Help? Advice? I need clarity.
Thank you.
