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Returning Member
posted Mar 17, 2025 11:17:51 AM

Expenses on investment property

We purchased an investment property in 2023. We had to make several renovations for it to be rentable. We completed the renovations in 2024, and were planning to start renting it. The HOA has said that we can’t.
Can we still deduct the expenses/carrying costs like interest, property taxes, utilities, and HOA fees until we finalize the dispute with the HOA?

For up to 2 years?

 

Can we then “place it in service“ after the dispute is finalized, and we start renting it?

0 3 1548
3 Replies
Expert Alumni
Mar 17, 2025 11:27:58 AM

No, unfortunately, because it is not a rental property (because of the dispute), you cannot deduct the expenses.

Returning Member
Mar 17, 2025 11:45:56 AM

 

Expert Alumni
Mar 17, 2025 11:58:41 AM

You should seek legal counsel.  "While you actively try to rent the property" is the same as this is NOT and CANNOT be a rental property until the legal dispute with the HOA is settled. [PII removed]