I understand that the value of the home and the capital improvements will be depreciated when they are put into service in 2023. But what, if any of the following expenses, can I deduct in 2022:
- Mortgage closing costs
- Mortgage interest
- Real Estate Taxes
- Pest Control
- Utilities
- Auto Travel Expenses to work on the property itself
- Individuals/Vendors to whom I issued a 1099
Only the RE taxes can be deducted on a Sch A and only if you itemize deductions. All the rest can be capitalized but you must make that election on a timely filed 2022 return.
2) If I can deduct some or any of the above in 2022, how do I enter this in TurboTax Desktop? See prior answer.
3) If I cannot enter any of the above on the 2022 return, does it carry over to the 2023 return? I do understand that the depreciation of the real property and the various appliances/major improvements will go on the 2023 return. It doesn't carry over ... they needed to be capitalized just like the 2023 expenses need to be capitalized as well since the property was not a rental property yet.
