@Carl wrote:
After the last tenant moved out, you were not holding the property for rental purposes. Any expenses incurred after the renter moved out are not deductible on SCH E. Period.
We were discussing the costs as being added to the basis of the property, not deducting them on Schedule E.
Further, whether the property was being "held for rental purposes" is a matter of semantics, to a large extent. It is entirely possible to hold a property for rental purposes even though repairs and improvements are being made.
