TurboTax not caring for more repair and cleaning expenses from 2024?

[salilsurendran]

I rented out my house on December 15, 2024, but before that, I made a lot of repairs in the year 2024 to prep my house for renting. The entire year of 2025 my house was fully rented out. Because it was only rented out for 15 days of 2024, TurboTax only took a portion of the repairs as a deduction in Schedule E and  listed it as repairs and cleaning.  I expected that TurboTax would enter the remaining repair and cleaning expenses in the 2025 tax return but it didn't do that. Is it something that I should manually enter?

[PatriciaV]

According to the IRS Pub 527 - Adjusted Basis, because the property was not available to be rented until December 15, 2024, any costs for repairs or improvements that you incurred increase the basis of the property and should have been entered as a separate Rental Asset (improvements). 

To correct this situation, you would need to file an amended return for 2024. The expenses that were deducted last year would be removed and the total expenses instead added as a separate rental asset for depreciation.

You would then report rental expenses incurred in 2025 on your tax year 2025 return, plus depreciation on your rental assets.

Additional information:

• Where do I enter income and expenses from a rental property?
• What kinds of rental property expenses can I deduct?
• How do I handle capital improvements and depreciation for my rental?

[salilsurendran]

What about realtor fees where I had to pay a realtor for finding tenants for my property? That can't be considered an improvement; however, TurboTax didn't detect my entire realtor fees last year. 

[RobertB4444]

A house is "available for rent" on the day you are looking for a tenant, not necessarily on the day that a tenant moves in.  If you were hunting for a tenant - and paying realtors to do it for you - then the house was available.  

You need to amend your 2024 tax return and change the number of days that the house was available to the day that you were ready to have someone move in.  You will then be able to deduct eligible expenses.