topic Non Rentable farmhouse in Deductions & credits

Non Rentable farmhouse

pldowney59 — Tue, 10 Feb 2026 09:31:05 GMT

Can a Vacant farmhouse, with unsafe electrical wiring from 1906, Knob and Tube and older plumbing issues, etc. have tax credits or can the Farmhouse be depreciated or deducted until it is rebuilt to safety standards? It would take several years to fix it up and is too unsafe. My sister was renting it until 2022.

Re: Non Rentable farmhouse

MinhT1 — Thu, 25 Jan 2024 16:07:09 GMT

No.

As the farmhouse isn't available for rental, rental expenses and depreciation can't be claimed.

Re: Non Rentable farmhouse

Opus 17 — Thu, 25 Jan 2024 16:28:21 GMT

When you place it in service as a rental, you will begin taking depreciation based on your adjusted cost basis -- that is, the price you paid, plus the cost of permanent improvements. So you can recover your improvement costs eventually, but only after the house is placed in service.