For a rental property that is not yet placed in service, if cleaning, maintenance and repairs are not deductible since not in service yet, can they be added to basis or do you lose out on the deduction?
No. Costs incurred prior to the property being placed in service for the very first time are personal costs, and are never deductible. They do not add to the cost basis just like repairing the broken toilet in your primary residence does not add to it's cost basis.
What about property tax and insurance, are those deductible if property not yet in service?
Property insurance is not a deductible expense for the period of time the property was personal use, just like it's not a deductible expense on your primary residence. Property taxes and mortgage interest are your only deductible expenses, and they are an itemized SCH A deduction.
Now property insurance, property taxes and mortgage interest are a deductible expense on the SCH E after the property is placed in service. In that first year, mortgage interest and property taxes are prorated between SCH A for the period of time the property was personal use, and SCH E for the period of time the property was in service as a rental.
The property insurance is prorated and that prorated amount is deductible on the SCH E for the period of time it was in service as a rental. The property insurance for the period of time the property was personal use is not deductible anywhere on your tax return.
