Does it make a different that this room is currently unused and not part of the square footage of the house? I'm spending a substantial amount of money (25K) to put in a bathroom, kitchenette, separate heating/cooling etc. Is there is no tax benefit in the year that I incur the expense (if its before the room is available for rent)?
To confirm the only tax benefit I will see is when I sell the property because the expense is added to the cost basis of the entire property (which will in turn reduce my capital gains tax burden?)
