I spent money in 2024 to prepare my primary residence for renting it in 2025. Which year should I apply the expenses to my taxes?

[jjhz]

I lived in my house until the end of 2024, then spent $7800 on painting, repairs, and household purchases to make the house a rentable property. The expenses were paid in 2024, but I didn't get my first renter until spring 2025. Do I claim the expenses on my 2024 or my 2025 taxes?

[KristinaK]

The rental must be available for rent before expenses can be deducted. Even if you had no renters, if the property was available for rent in 2024, you can deduct those expenses in 2024. The best indicator of availability is advertising of the property for rent. The thinking is that one wouldn't normally advertise unless it's ready to be rented. 

If that didn't happen until 2025, then all these expenses are added to the basis of the property and depreciated with the rest of it. 

Here is a Help Article that tells about improvements and depreciation.