@sphannan wrote:
You mentioned real estate taxes. I would assume you also have insurance. An IRC Section 266 election can be made to capitalize these and other 'Investment Expenses'.
Those expenses have to be otherwise be deductible in order for an election to be made to have the expenses treated as capital items.
An expense for insurance on a home that is not held for production of income (e.g., rental or appreciation) would not qualify for the election (i.e., the expense would not otherwise be deductible).
