I have a first year rental home and my gross income was thirty thousand. But my bills to upgrade totaled seventy thousand. Is this amt ok to deduct on my taxes?

[kwjz]

First year renting Home. It’s a small business I started that I provide services for through a managing company. 

[KrisD · Accepted solution]

No, expenses can only be reported when the unit is ready and advertised for rent. If you spent 70,000 to upgrade before the unit was ready to rent, add this to the basis of the property and depreciate. 

You will report future rental income and expenses on a Schedule E. 

[kwjz]

So many of the improvements to my home have to be Individually depreciated? Or do I have to add it to the price I paid for the house , minus the land? I purchased the house last year .  The house was being renovated during the time it was rented.

[KrisD]

First, report the price of the building separate from the land. Land is not depreciated. Next if the house was being rented, separate the improvements by class. If the improvements are different classes, such as roofing, appliances, carpet,they will need to be listed separately so that they can be depreciated according to their expected useful life. Repairs may be expensed since the home was being rented. Repairs are getting the property back to where it was, not making value improvements. So Weed and feed, expense. Utilities, expense. New roof, capital improvement and depreciated.

[kwjz]

I was able to eliminate the money i made on my rental home by depreciating many of the upgrades i did on my rental home and taking mortgage, taxes and insurance deductions etc . I did leave some improvements out because it would have been too much , I think. Can i claim those improvements to my home on next years taxes if i don't declare them this year.?

[kwjz]

I was able to eliminate the money i made on my rental home by depreciating many of the upgrades i did on my rental home and taking mortgage, taxes and insurance deductions etc . I did leave some improvements out because it would have been too much , I think. Can i claim those improvements to my home on next years taxes if i don't declare them this year.?

[kwjz]

I was able to eliminate the money i made on my rental home by depreciating many of the upgrades i did on my rental home and taking mortgage, taxes and insurance deductions etc . I did leave some improvements out because it would have been too much , I think. Can i claim those improvements to my home on next years taxes if i don't declare them this year.?