Depreciation without income

[Russ Eisenberg]

I purchased a house for cash off a HELOC in 2022. It is in rehab now and no income has been generated from the property. My W2 life is very simple, so I typically just take the standard deduction. Do I need to itemize this year in order to claim the depreciation and rehab expenses as a carryforward loss? Or will I just start the depreciation next year once their has been income generated?

Thank you.

Russ

[Michael Plaks]

Quote from @Russ Eisenberg:

I purchased a house for cash off a HELOC in 2022. It is in rehab now and no income has been generated from the property.

If this property is to become a rental property, you don't report anything in 2022 because it was not ready for occupancy. Everything related to this property, including depreciation, will start in 2023.

If this property is to be flipped, there's some reporting for 2022, and it's probably best to get some help. Depreciation is not applicable to flips. 

Either way, this has nothing to do with itemizing. Itemizing is for non-business deductions. Business is reported elsewhere, regardless of whether you itemize your personal deductions.