Hi, I have a rental property that I am 50% owner and we evicted the tenant at the end of 2022. In 2023, we did not have it rented out as we were performing major repairs and cleanup.
Question #1
The type of repair was to repair the basement wall that was caving in due to defective bricks used during that time period. Is this considered an "improvement" or a repair?
Question #2
Do I deduct the cost of the repairs and depreciation for calendar year 2023 or include that in 2024 when I file?
When the Turbotax Desktop walked me through, it sounded like it should be done in 2024, the year that we are selling the property (or if it was rented again and had income). But when doing the final check on my taxes, it was asking about the property again and wanted to complete a Schedule E as if I had not completed those questions. It's has me confused.
I should also mention that this property is in another state. This is the first year that we have not had any income on it.
Hoping someone more knowledgeable can help.
