Cost Basis before being in service
Ok my understanding is that repairs and improvements to get a property fixed up so it can be put into service as a rental are added to the basis of the property per what the IRS says. So with that said, I have a couple questions.
#1 -If you bought the property last year and did nothing to it because you didn't have the time so it just sat there, do you record it on your 2014 taxes and if so what do you record? It will need repairs and improvements before it can be placed in service, do you then add them in the next year? If it is not placed in service yet, do you do anything?
#2 Different property, if you bought it last year and did repairs and improvements up through Jan. and Feb. of this year and then placed it in service this year, do you account for anything for taxes for last year?
Regards,
Mark