Carl
Level 15

Investors & landlords

May I expense property tax, insurance, depreciation, utilities and mortgage interest for full year of 2022?

Again, just as I stated in my earlier post, if the property remained classified as a rental for the entire 2022 tax year, then yes.

The remodeling that was done on the property because of my tenant damaged the property

Why you remodeled doesn't matter.

so would this considered an expense for 2022?

Most likely no, based on my assumption that what you are calling a remodel, is actually a property improvement by IRS definitions.

If it not an expense, may I depreciate the remodeling cost for the time period between remodeling was completed until the rest of the 2022?

That's what I said above, though not directly. Assuming that what you call a remodel is "in fact" a property improvement, it adds to your cost basis in the property. So that cost is capitalized and depreciated with depreciation starting on the first day the improvement asset was placed in service. The remodel would be entered as an asset in the assets/depreciation section of the program with an "in service" date being the date the work was completed, or the first day it was "available for rent", whichever is last.