Is there lost rental income deduction?

[hameshatumkochaha]

Hi,

This is the first year of filing taxes after putting our old home in the market for rental.  Say we put the home for rental and took a month to get the rental started and the monthly rent is $3k.  That 1 month is a lost revenue.  I wonder if it qualifies as some kind of loss such as property vacancy etc.  I doubt that it does but figured I ask instead of assuming. 

More importantly, while TT will ask me relevant questions, I am wondering if there is a good website or reference I can read that is like taxes101 for new landlords.  I can thus avoid asking basic questions. 

Thanks!

[MinhT1]

No, you cannot deduct "lost" rent. But while your property is on the rental market, you can deduct rental expenses even if there is no rental income.

You can read this TurboTax Help article on the rental expenses you can deduct.

And this article on Where to enter rental income and expenses.

[hameshatumkochaha]

Thanks!  If I made an upgrade (flooring) just before emptying the house to get it ready for rental, can I apply that upgrade for depreciation (i.e. we were living in the home during the upgrade).  

[KrisD15]

Not as a separate asset, but if the new floor increased the value of the house, use the increased value and start depreciation on the building from there.  

[hameshatumkochaha]

Thanks.  If there is a guidance document or example to estimate the home value due to flooring etc; please provide.  Thanks again for all the help!

[PatriciaV]

Any real estate professional would be able to give you an estimated fair market value for the renovated property.

Your adjusted basis for depreciation purposes would be the original purchase price plus any improvements (upgrades or additions) that you have made. Historical property tax records may provide the price you paid for the home. Improvement costs would come from your personal financial records.

Your best reference for reporting your rental activity comes from the IRS: Pub 527 Residential Rental Property