Can I use a property I haven’t rented yet on my P&L?

[John Kilhafner]

Can I report a loss for a property I haven’t rented yet because I came across items that had to be fixed ? This property is just now being put up for rent almost a year later because of items that came up and slow contractors.

[Vicki X.]

Quote from @Ashish Acharya:

Quote from @John Kilhafner:

Can I report a loss for a property I haven’t rented yet because I came across items that had to be fixed ? This property is just now being put up for rent almost a year later because of items that came up and slow contractors.

 Some of the holding costs might generate losses. The rehab itself might be and would be an asset, construction-in-progress, in the B/S. 

@John Kilhafner as far as I know, when you prepare a schedule E for the IRS, you can only report expenses (depreciation included) took place during your fair rental days.  Do consult with a CPA to get the accurate answers!

There are good amount of info online, but to be honest, they are not always accurate.

Some rental accounting software can help you too, as they also offer blogs and tooltips.  Examples: Azibo, Stessa, reihub

Hope it helps!