Rental property

[AkStep]

We purchased a property in July of 2024 with the intent of renting it to our son for a few years then him purchasing it. We had to do many upgrades and repairs to get it livable. He only moved in March of 2025. I’m not sure how to enter this on our taxes. I tried to put it in as a rental but it said not to since it wasn’t rented in 2024 but not sure if I still need to report it and the expenses of the repairs 

[AnnetteB6]

For 2024, you can claim property taxes paid for the potential rental property on your Schedule A itemized deductions if you use itemized deductions.  Also, if there is a mortgage on the property and it could be considered a second home for you, then you can claim the mortgage interest.  

Otherwise, all of the property improvements that were made will be added to the basis of the property as of the date it was placed in service as a rental (March 2025).  This will be included on your 2025 tax return when you are reporting your rental income and expenses.  So, be sure to keep records of the expenses for the improvements.