@AmeliesUncle wrote:
Again, I am not 100% certain of that and I don't have any citations right now, but it seems logical to me....
Yes, I agree 100% that it is, indeed logical, but the Reg I cited earlier makes no mention of adding expenses such as maintenance and repair costs to the depreciable basis.
I would hate to have to go into an audit (albeit it would be highly unlikely that anything like this would ever be the subject of an audit) arguing that pre-rental maintenance/repairs are analogous to a Code or Reg section primarily applicable to an active trade or business (at which point I would be afraid they would simply whip out 1.1016-2).
Anyway, the solution (or workaround) is to make the property available for rent at the same time maintenance or repairs are being conducted. There is no reason the property has to be in absolute perfect condition to be "available for rent". [you would not believe the condition of some properties in my area - SWFL - that people are renting while their properties are being totally rebuilt from the ground up]
