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How do I claim the purchase price and expenses for a rental bought in 2018 that is still being remodeled in 2019? and what specific expenses can be deducted?

 
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MinhT
Expert Alumni

How do I claim the purchase price and expenses for a rental bought in 2018 that is still being remodeled in 2019? and what specific expenses can be deducted?

If you bought a rental property in 2018 and are still remodeling it, there are no rental expenses that you deduct in 2018. Rental expenses can only be deducted from the day the property is placed on the rental market. The cost of remodeling is added to the cost basis of the property.

For 2018, you can claim property taxes paid on the property in the Deductions & Credits section if you itemize your deductions. You can also claim Mortgage interest on the property (if you do not have another second home).

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