wbforbes
New Member

Can I deduct expenses associated with preparing my home for rent in Nov/Dec of 2019 if house was rented in Jan 2020?

 
GiseleD
Expert Alumni

Investors & landlords

If you had rental income in 2019, then these expenses are deductible in 2019. If not, then you will see no benefit for these expenses. 

 

Unless...the expenses were capital improvements. An expense is for an improvement if it: 

  • Results in a betterment to your property.
  • Restores your property.
  • Or adapts your property to a new or different use.

These assets typically have a useful life of more than one year and must be depreciated over their useful life. For example, furnace, flooring, windows, etc. In this case, you will have to capitalize them (add them to your basis), and recover them through depreciation when the property IS placed in service. The term of depreciation will depend on the property class. 

 

Here's how to enter income and expenses from a rental property:

  1. With your return open in TurboTax, search for the word rentals in the search box.
    • Click Jump to rentals in the search result.
  2. Answer Yes to the question Did you have any rental or royalty income and expenses?
  3. Follow the on-screen instructions as you proceed through the rental and royalties section.
    • We'll first ask you to enter general information about your rental (description, address, ownership percentage, etc.) 
    • Eventually, you'll come to the Rental Summary screen which is where you enter your:
      • Rental income
      • Rental expenses
      • Capital assets and depreciation
      • Vehicle expenses
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"