I came to know about this post.
https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/if-i-replaced-windows...
If I got loan for windows and there is no interest on windows loan until paid in 15 months:
Note: Its for " Residential Rental Property" and filling schedule E.
Example:
Total Loan: $13,000
Paid $4,000 in 2024
Rest will be paid in 2025
Whats the best Practice to do?
1) I know we can use 27.5 years to depreciation
https://www.irs.gov/faqs/sale-or-trade-of-business-depreciation-rentals/depreciation-recapture/depre...
2) Can we only add it as "miscellaneous expenses" for $4,000 in 2024 and claims $9000 next year?
If I use that election can i add $4000 directly into form?
Is there anything mentioned in IRS website that can support option 2?
What If IRS Audit? Is there any action against of above selection? What they would look at is if you were trying to expense an item that really needs to be depreciated?
Thanks
