If I have an inherited home I want to rent, but have not yet, but have done improvements on it, can I deduct the improvements?

[smokay12]

I have owned the house since my mom died in 2015, and done upkeep and improvements but not rented it yet.  Can I deduct the improvements and repairs I made in 2016 in an effort to get it ready to rent?

[Anita01 · Accepted solution]

Nothing is deductible until the house is actually available for rent.  Up until then, any improvements are just added to your cost basis.  If you only own one other home, mortgage interest and property tax is deductible on your personal Schedule A.  

Once the property is available for rent, meaning advertised and ready for move in, you can then deduct rental expenses against the rental income.  One of those expenses will be depreciation, which is based on your cost in the property at that time when it becomes ready for move in.