Can I deduct repair expenses on a rental property that the tenants moved out after they damaged the property if I move into the property?

[clminett]

I lived in this property from 2012 to 2015 then turned it into a rental with the same tenant for the past five years.  He recently moved out and I decided to move back in.  He did a lot of damage to the property while he was here that I didn't know about until the day I moved back in.  Can I deduct the cost of repairs now that I am using it for personal use again?

[Carl]

Unfortunately, no. The property ceased to be classified as residential rental real estate on the date the last tenant moved out. Since your intent from that date forward was/is to move back into the property, any expenses incurred after that date are no longer deductible rental expenses at all. They are personal expenses, and those personal expenses are not deductible.

[DawnC]

Unfortunately, no.  Repair expenses incurred are only deductible if incurred while the property is classified as a rental.  The day you moved back in, the property became personal use again.  

Repair costs incurred in the process of preparing the property for rent are not deductible.  

[Carl]

The day you moved back in, the property became personal use again.

Actually, it's more accurate to state the property became personal use the day the last renter moved out. That's because there was no active intention or attempt to rent out the property again. Additionally, even if there was intent, since you in fact did not rent it out again after the last renter moved out, the repair expenses were not for the benefit of the next renter. So they're just not a deductible rental expense.