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Investors & landlords
The cost of capital improvements cannot be deducted as a rental expense. It has to be added to the cost basis of the rental home to be depreciated over 27.5 years.
Also the cost of preparing the home for rental cannot be counted as a rental expense.
Depreciation and rental expenses can be deducted from the date the property is placed on the rental market. So in your case, you can deduct depreciation and rental expenses if any from August, which the date the prperty was placed on the rental market.
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‎January 23, 2023
10:36 AM