PattiF
Expert Alumni

Investors & landlords

These expenses are deductible since it was still considered a rental. You expected to rent the property and did list it for rent. Keep a record of the rental listing if needed. The air condition could be listed as an improvement.

 

Here is some information from the IRS that applies to your situation.

 

From the IRS Publication 527:

Idle Property

Continue to claim a deduction for depreciation on property used in your rental activity even if it is temporarily idle (not in use). For example, if you must make repairs after a tenant moves out, you still depreciate the rental property during the time it isn’t available for rent.

 

Vacant rental property.

If you hold property for rental purposes, you may be able to deduct your ordinary and necessary expenses (including depreciation) for managing, conserving, or maintaining the property while the property is vacant. However, you can’t deduct any loss of rental income for the period the property is vacant.

 

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