A few things to clarify.
- Any work done after the last renter moved out, and before you moved in are not deductible. Period.
I did improvements on the house which cost about $100,000, and then I moved in in September.
Assuming all the repairs and improvements were done after the last renter moved out, and nothing was ever placed "in service" once the work was completed, you have absolutely nothing to report on the SCH E concerning this.
it was not in use for 60 days during renovations; and then I have lived in it for 160 days.
Further leading to my understanding that there was absolutely no business use of any type what-so-ever once all the work was completed.
$1500 for painting the house;
Simple maintenance expense. Not deductible anywhere since was done after last renter moved out, and you did not rent or attempt to rent it again upon completion of the work.
$1500 for installing cabinets;
If it was something like kitchen cabinets or bathroom cabinets, that's a property improvement that adds to the cost basis of the property. This is a grey area for safe harbor, since it becomes "a material part of" the structure. (i.e.; it's something that if removed from the property, it would lower the cost basis of that property.) But in your case safe harbor doesn't come into play since the property was never placed back "in service" once the work was completed.
$1500 for demolition;
Demolition of what? The old kitchen cabinets maybe? Moot point not worth discussing, since the property was not placed in service once the demo was complete. But if you include with the cost of the new cabinets, that adds $3000 to your cost basis in the property.
$2000 for a fridge;
That could easily qualify for safe harbor since it's not a material part of the structure. But again, not in your case since that fridge was never placed in service as a rental asset.
$25 for door handles;
That's a repair expense, straight up.
$2,000 for plumbing work;
Property improvement not eligible for safe harbor, because the plumbing system is without question "a material part of" the structure. So it adds to the cost basis. But again, since the property was never placed in service as a rental once the work was done, you'll not enter it anywhere on any tax return.
$350 for a dining room light;
If that was to replace an old (maybe outdated) light, that's a repair expense. But that could go either way. In my opinion (and we all know what opinions are like.) I'd call it a repair expense. classifying it as an asset and adding $350 to my cost basis isn't going to make even a $1 difference in my tax liability now, or in the future when I sell the property.
and lots of other small purchases.
Those would be repair/maintenance expenses most likely. But again, since the property was not rented out again after the work was done, none if it is deductible anywhere on your tax return.
Now one thing you "might" be able to do, since all this work was done in such a short time (Apr thur Aug of 2021 as I understand it) you may be able to just lump it all together with a few exceptions (such as the fridge) and call the whole shebang a property improvement. That adds to the cost basis of the property. Of course, that will not come into play on any tax return until one of three things happens in your life.
1) You convert the property back to rental and rent it out again.
2) You sell the property
3) You die.
That makes the SCH E book keeping simpler should you convert it back to rental too. You don't have to list each and every little item, since it would all convert on the same date. You simple take your new higher cost basis total in the property, subtract the prior depreciation from the structure value that you've already taken in the past, and then start anew with depreciation using that adjusted cost basis.
