I have a similar question, though related to planning for the sale while still renting. We plan to rent out a rental property for 1 more year (July to July) and then may sell it. Is it more advantageous, tax wise, to paint while it is still a rental, OR paint after we stop renting it out and prepare for sale? If we paint while it is still a rental, I assume it would reduce the profit from the house, thereby reduce taxable income (24% tax rate). If we paint after we stop renting, the cost would be added to the basis (?) and would reduce capital gains (20% tax rate). If my thinking is correct, it would be better to paint while it is still a rental property. Or am I missing something? I'm not sure of the best way to simulate this in TT.
