patrick5
New Member

I'm going to build an ADU (accessory dwelling unit) on my rental property. It will be a detached separated unit. How do I deduct the costs of construction?

I am already renting the main house, and will be renting the new unit long-term. In the year I'm building the new unit, how do I deduct the constrution costs? Do I list them as improvement to the property as a whole and then depriciate them?  And would the entire unit be considered as one improvement?