1. Does this also apply to commercial real estate, such as office condos? Yes.
2. In my particular situation, a piece of property that was rented for 14 years suffered the collapse of an exterior walkway, and therefore could not be rented until the walkway was replaced. Are all normal operating expenses -- property taxes, condo fees, mortgage interest, etc., -- deductible? Yes carrying costs are still deductible on a commercial rental.
Or do they have to be added to basis? Only the improvements need to be added as new assets for depreciation ... do NOT adjust the currently depreciating basis.
