All your expenses (except property taxes and mortgage interest
if you have one) paid BEFORE the
property was listed as available for rent are simply added to the cost of your rental property (in your records). No additional entry TurboTax is rquired. This includes your "closing" expenses, such as appraisal costs, fire
insurance, as well as your repair costs. The total amount is called adjusted
basis (not just the cost, but the cost plus all your pre-rental expenses).
Once the property is available for rent, you may start
depreciating the rental property and use the "adjusted basis" in the Sale of Property/Depreciation section. You can deduct your property taxes and mortgage interest, in
the Deductions & Credits section, for pre-rental time frame. Once the rental is available, they are your rental expenses.
If your start up expenses are paid while the property is available for rent, but is not rented, they are your regular expenses, entered in the Expenses section.
- Federal Taxes
- Wages & Income
- Rental Properties and Royalties - follow the instructions Where do I enter income and expenses from a rental property? - once you go through some general information, you'll arrive at Rental summary screen. Please select Expenses or Sale of Property/Depreciation and enter your property.
For more information, please see link below:
https://ttlc.intuit.com/questions/2569433-what-kinds-of-rental-property-expenses-can-i-deduct
https://www.irs.gov/taxtopics/tc414.html
