No, you cannot deduct rental expenses prior to the property being available for rent, unfortunately. All your expenses paid BEFORE the property is listed as available for
rent are simply added to the cost of your home (in your own
records). This includes all your repair/renovating costs. The total
amount is called adjusted basis (cost of your home plus your renovations). Travel and food are not deductible expenses.
Once the property is available
for rent, you will start depreciating the rental and use the "adjusted
basis" for depreciation purposes and will be able to claim your other
rental expenses.
Data entry for rental property
once it is available for rent:
- Federal Taxes
- Wages
& Income
- Rental Properties and Royalties - follow the
instructions Where do I enter income and
expenses from a rental property?
