Hi, this is in interesting topic and thank you for the major contribution from @Carl
I am also building a detached ADU for rental purpose in my primary residence like @Dtee is/was doing. I started the official process in early 2020 during which I started paying for architecture/structural drawing along with permit fee etc.. So the construction expense started in year 2020.
This ADU will be in service in the middle of 2021
For the current tax filing for year 2020, (the ADU is not in service yet in 2020), will I be able to deduct any of these expense?
I read about startup expense, are the startup expense($5000) only deductible IN the first year of service? (in my case that would be year 2021)
I am wondering if there is any deduction I can take in tax year 2020.
many thanks
Frank
