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What expenses that I incurred after the eviction at a rental property but before I moved in are tax deductible? The tenants trashed the home, what is deductible?

The house sat vacant for 2 months while I renovated before we could move in.  This added expenses for me to rent somewhere else while repairs were made, on top of the expenses of repair/renos.  Some repairs were done after I moved in to property.  

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1 Reply
PatriciaV
Expert Alumni

What expenses that I incurred after the eviction at a rental property but before I moved in are tax deductible? The tenants trashed the home, what is deductible?

Unfortunately, any repairs you made after you stopped using the property as a Rental are not deductible. Instead, those costs increase your basis in your personal residence. This would decrease the amount of taxable gain on the sale of the property in the future.

However, if you made the repairs while the property was still listed and/or available to be rented, those costs would be deductible Rental Expenses.

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