Purchased second home that has remained empty due to renovations. Can the second home be classified as rental property even though it was not rented all year?

namedeiros · ‎January 31, 2025

Plan to fix purchased second home, then move into it afterward. Can the mortgage interest be deducted as rental expense even if home was not rented all year?

RobertB4444 · ‎January 31, 2025

No. Expenses for rental property can only be deducted if the rental home is 'available to rent'. While it is under renovation you can deduct taxes and interest as itemized deductions on your federal return and add up all of the renovation expenses to enter as a capital asset to depreciate after the rental home is active.

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namedeiros · ‎January 31, 2025

Thank you for your reply. That makes sense.

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Purchased second home that has remained empty due to renovations. Can the second home be classified as rental property even though it was not rented all year?