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DIY Improvements Rental Property

I'm at a lost at where to input my expenses/assets. Purchased the property in March 2021. Been doing complete remodel of the property myself (DIY) all through 2021 and into 2022 with the intention of renting in 2022. Majority of the purchases for materials are separate receipts and are typically below $2,500, with a few that are above such as countertop and cabinets. 

 

  1. Which tax year do I input these expenses since I'm not planning on renting until 2022?
  2. Do I input the purchases as assets or depreciation? I tried putting in a list of assets of all my receipts under $2,500 but there's no deductions. 
  3. Can I sum up all the purchases as one expense or do I need to break them down? 
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3 Replies

DIY Improvements Rental Property

ALL of the hard costs for the improvements (your labor doesn't count) and carrying costs  are added to the cost basis of the property and the total is depreciated in one place.   The "safe harbor election" is not available to you since this is not a working rental yet.   If you put the property into service in 2022 then the total cost will start being depreciated in 2022. 

DIY Improvements Rental Property

Do I need to breakdown the costs or can it be summed up?

DIY Improvements Rental Property

Always keep good records however in the program you will only enter the total. 

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