Oceanside, CA · Member since 2016 · 8 posts · 1 vote
I have tried searching the posts, but didn't see anything...I was curious if anyone knows if there is a way to deduct improvements you make to prep a house you currently occupy but bought for a rental...is there a time window...I am kind of in a buy-rehab-rent situation and did not think I would be able to deduct any of the rehab costs, but figured I would ask just in case I am wrong and I can....appreciate any literature you might point me to as well...I am trying to finish up my accounts.
Improvements to the house before it becomes a rental will be capitalized. That means they will be added to the basis (cost) of the house, and depreciated with the house.
In other words...your current rehab costs will translate into higher depreciation expenses on your Schedule E when the house is a rental property.