JulieR
Expert Alumni

Investors & landlords

It depends. If the rental unit was not available to be rented during the period of remodeling, it would essentially be converted to "personal use" during the period of remodeling and the interest and taxes for the period of "personal use" could be allocated to Schedule A.

But, if the rental was held out as a rental during the time of remodeling, you would deduct expenses as you normally would except you could not take a loss for the period of time it was vacant.  See the following: https://ttlc.intuit.com/replies/6703636

Another consideration is that you may not even need to make the allocation because of the increased Standard Deduction unless the total of your Itemized Deductions are greater than the Standard Deduction.

View solution in original post