My multi-member LLC purchased a a residential property with 19 units. If I/we travel to renovate one or two units, are those travel expenses (gas, hotel) capitalized or expensed?
One trip was to renovate one vacant unit. There were only 2 vacant units out of 18 units so the total property is already in service. One other unit was used by the previous property manager.
The second trip was to renovate the property manager unit and convert it into 2 units.
The 3rd trip will be to renovate the remaining vacant unit.
Future trips will be to renovate units as necessary upon vacancy.
I assume the property is considered in service unless each unit needs to be evaluated to determine if that unit is in service.
Thanks.
