topic Can we deduct the expenses from prior years getting a home rehabilitated to rent? in Investors & landlords

Can we deduct the expenses from prior years getting a home rehabilitated to rent?

jennings46x — Thu, 06 Jun 2019 09:06:10 GMT

Bought the home in 2013 with the intent for it to be a vacation rental. We never lived in the home, it was just an investment. We put about $15,000 into it and it was rented in 2017 and will continue to be a rental. Can we deduct the costs to get it ready/renovated to rented (2013-2017)? We have never deducted these expenses.

No, you cannot deduct the renovation costs incurred prior...

MinhT — Thu, 06 Jun 2019 09:06:11 GMT

No, you cannot deduct the renovation costs incurred prior to placing your home on the rental market.

But you can add these costs to the cost basis of the home to be depreciated over 27.5 years.

Okay, so I add it to the cost of acquiring the asset? The...

jennings46x — Thu, 06 Jun 2019 09:06:13 GMT

Okay, so I add it to the cost of acquiring the asset? The same page as the land value?

Yes.

MinhT — Thu, 06 Jun 2019 09:06:13 GMT

Yes.