Basically, on your 2016 taxes all you'll claim is the mortgage interest and property taxes, and you'll include it with the total property taxes paid in the "Your Home" section. You'll not be able to claim anything else until the tax year you actually sell the property. At that time, all is reported under the Wages & Income tab in the Investment Income section. You won't be able to claim anything else beyond mortgage interest and property taxes, until the tax year you actually sell the property. So keep all your purchase paperwork, along with all your receipts for all the property improvements you did.
Property Improvement.
Property improvements
are expenses you incur that add value to the property. Property
improvements can be done at any time after your initial purchase of the
property. It does not matter if it was your residence or a rental at the time
of the improvement. It still adds value to the property. (Increases your cost basis)
To be classified as a
property improvement, two criteria must be met:
1) The improvement
must become "a material part of" the property. For example,
remodeling the bathroom, new cabinets or appliances in the kitchen. New carpet.
Replacing that old Central Air unit.
2) The improvement
must add "real" value to the property. In other words, when the property is appraised by a qualified,
certified, licensed property appraiser, he will appraise it at a higher value,
than he would have without the improvements.
