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I have a property that I fixed up to rent out last year. As of march I now have a renter. Can I write off expenses this year ?

 
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3 Replies
Coleen3
Intuit Alumni

I have a property that I fixed up to rent out last year. As of march I now have a renter. Can I write off expenses this year ?

It must be ready and available for rent.

From IRS Pub 527Vacant rental property.   If you hold property for rental purposes, you may be able to deduct your ordinary and necessary expenses (including depreciation) for managing, conserving, or maintaining the property while the property is vacant. However, you cannot deduct any loss of rental income for the period the property is vacant.

I have a property that I fixed up to rent out last year. As of march I now have a renter. Can I write off expenses this year ?

Does this change if I was living there while changing the condo to rent it out?
Coleen3
Intuit Alumni

I have a property that I fixed up to rent out last year. As of march I now have a renter. Can I write off expenses this year ?

Yes, If it was not available for rent, meaning fixed up and ready to go, then you can't deduct. If you were able to rent it and be out of the unit the moment a tenant was ready to move in, then that would be meeting the rule.
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