New Rental Property

Jesse94 · ‎November 16, 2022

We purchased a house at auction last year as a rental property and have been working on it since then putting a new roof on it, new AC, new windows and lots of other things. Are we able to claim these as a business losses on this for this year or how do we go about accounting for this from a tax perspective.

ConyEA2021 · ‎November 16, 2022

Hi @Jesse94

Any cost of any additions or improvements made before placing your property into service as a rental that have a useful life of more than 1 year will increase the basis of the property. Those improvements should be entered as separate Rental Assets and are subject to depreciation. Also, there are no deductible expenses until the property is placed in service on the first day that a renter "could" have moved in.

Here's a useful link with more information: Rental Property

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"