Closing escrow on a rental SFR in a week.
Will not have expenses (closing, repairs, etc) in 2020, but no income.
Will I be able to deduct all these closing costs and repairs expenses, in 2020?
You'll need to sign in or create an account to connect with an expert.
Since the property will not be available for rent or actually rented in 2020 then you will not enter anything about the rental on the 2020 return since it is not a rental property yet.
On the 2021 return they cost basis of the return will be used for depreciation purposes. Cost basis = purchase price + cost to buy + improvements/repairs.
I think you need to educate yourself on what the IRS expects form a landlord on a Sch E : https://www.irs.gov/forms-pubs/about-publication-527
Turbotax FAQs:
If the property is made available for rent, for example - published on the MLS, and other rental platforms (but no lease is signed in 2020) ... will I then be able to deduct the closing costs, travel , etc in the 2020 tax return?
Expenses AFTER it was made available for rent are deductible.
In most cases, all expenses BEFORE it was made available for rent are added to your "Basis" for depreciation.
All expenses paid prior to the property being available for rent are added to the cost basis without exception.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
smitahome
New Member
user17735825837
New Member
ZOS
New Member
hawilder0706
New Member
anqizhang
New Member