What Pre-Service expenses are deductable?
My 3 family purchase is almost ready to rent, just over 6 months renovating.
I understand "Make-rent-ready costs are not deductible." My question is what expenses along the way are a deduction this year? Property taxes? Utilities? For sake of simplicity, let's assume I list the property to rent on January 1, 2015, so that's the "in-service date."
I'm just trying to understand what actually gets written off this year. One last point - there's no mortgage yet. I wrote a check from my home equity line. I'm expecting that the interest there gets treated as tapping that line for anything, and is a deduction on my own Schedule A, and doesn't hit Schedule E at all.
Looking forward to getting this one rented and seeing where the numbers fall after the first few months.