bghouck
New Member

Converted rental property of 6 years to personal residence, TT pop-up says 0 days are personal use, as long as it was rented out for 12+ months.Can I account for remodel?

Can I deduct any of the remodel expenses made after tenants moved out, and while we lived there, even though TT suggests that 0 days should be considered personal use?

DS30
New Member

Investors & landlords

No - you will not be able to either include any remodel expenses or claim any rental deprecation expenses for the remodeling as part of your rental expenses if the remodel was done after the property was no longer available for rent.

Instead, you will include the cost of any remodeling that is considered a capital improvement to the cost basis in your house.

A "capital improvement" to your home, meaning the improvement must increase your home's value, adapt it to new uses, or extend its life. Examples of capital improvements are: adding a third bedroom, adding a garage, installing insulation, landscaping and more.