In August I've hired a management company to oversea all repairs/maintenance work prior to renting the house out. Repainted, repaired leaking toilet...etc. These cost add to the basis of the property for depreciation purposes.
In October the house is officially on the market for viewing and application. This is the first date of rental use even if you do not have a tenant yet ... it is on the market. Depreciation may now start.
In November I had a roof leak repair that was done. Deductible expense on the Sch E.
In December the house is still on the market and I had to hire landscaper/cleaner to tidy up. Another expense on the Sch E.
Can I deduct the loss I had from the one house against the gains from the sale? In a way ... the allowed loss on the Sch E can be used against other income on the return not just against the cap gains on the Sch D.
I highly recommend you seek local professional assistance if you are not 100% certain of what you are doing. It is worth the cost to get the education you need and the peace of mind it is done correctly.
