Hi, I bought a two-family rental property in 2023 and had to gut it. The work is still ongoing now. I have had many expenses from holding costs, renovations, taxes, etc in both 2023 and 2024 but it wont be rented until 2025.
I want to confirm that the correct way to report these expenses for both years will be to wait until 2025 even to add the property to a return and add all of the expenses from the previous two years to the adjusted cost basis of the property on my 2025 return. Is that correct?
Thank you!