Investors & landlords

It depends. The expense to repair the brick wall to stop a cave-in situation seems like a capital improvement, however, you can use cost and life expectancy to make final determination.  If you decide it is a capital improvement then it will be depreciated like the rental as 27.5 year recovery period.

• The calendar year when you should use these expenses is the year the rental was available for rent, if that was 2023, then you should use them on your 2023 tax return. If your intent is to rent it out as soon as it's ready you can continue to depreciate the existing assets.
• If on the other hand you do not plan to rent it, then you may want to convert it to personal use until it is available to rent again since the period is extensive. You could remove for personal use on January 1, 2023.
• During any period where the property is not available for rent then the regular operating expenses are also not deductible during that tiime.
  • You must decide based on the information provided.

See IRS Publication 527 (search vacant).

Vacant rental property.

If you hold property for rental purposes, you may be able to deduct your ordinary and necessary expenses (including depreciation) for managing, conserving, or maintaining the property while the property is vacant. However, you can’t deduct any loss of rental income for the period the property is vacant.

Vacant while listed for sale.

If you sell property you held for rental purposes, you can deduct the ordinary and necessary expenses for managing, conserving, or maintaining the property until it is sold. If the property isn’t held out and available for rent while listed for sale, the expenses aren’t deductible rental expenses.