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Level 5
posted Mar 3, 2024 11:34:45 AM

Multi unit rental property, one unit not rented, not used for personal use. Question on topic

I live in a home with 3 units.  I live in one, rent the other two.  One of the other units was not rented in 2023, but needed some repairs... due to Covid finding a contractor to do work in my small town is impossible.  If I didn't use it for personal use, but it was not rented, and not really available for rent how to do I treat this on my taxes?  I normally depreciate my rental portion of the property and still have to pay expenses, like sewer and utilities.  Are these expenses deductible?

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1 Replies
Expert Alumni
Mar 4, 2024 10:11:36 AM

Yes, the expenses would be deductible.  See IRS Publication 527 Residential Rental Property, page 10 here.

 

Idle Property 

 

Continue to claim a deduction for depreciation on property used in your rental activity even if it is temporarily idle (not in use). For example, if you must make repairs after a tenant moves out, you still depreciate the rental property during the time it is not available for rent.