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Remodeling a house to rent it. No rental income this year as work not done. Turbo Tax doesn't account for this scenario. How do I answer the questions about income???

 
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AnnetteB6
Expert Alumni

Remodeling a house to rent it. No rental income this year as work not done. Turbo Tax doesn't account for this scenario. How do I answer the questions about income???

If the house is not being advertised and available for rent, then it has not been placed in service as a rental property.  In that case, you do not enter any information into your return for Rental Income and Expenses for 2020.  Any expenses you incur for improvements to the property will be added to the cost basis for depreciation once it becomes a rental property placed in service.  You can claim property tax on Schedule A, and mortgage interest on Schedule A provided this is only the second property you own.

 

If you are advertising and making the house available for rent while continuing to remodel it, then you would enter the information about your rental property into your 2020 tax return.  You will just have zero income and zero days rented.

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Remodeling a house to rent it. No rental income this year as work not done. Turbo Tax doesn't account for this scenario. How do I answer the questions about income???

If this was a rental in the prior tax year and it was taken out of service for repairs and you plan to put it back in service once the work is done ... then to keep the rental active you must enter ONE day of rental use in the program.  

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