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Buy and Hold Remodel and taxes
Purchased a buy and hold and am in the long........ process of remodeling. Does this go on the schedule E along with my other buy and hold since I did not rent at all last year?
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Hi @Greg Pugh
The money you are spending now is not an 'expense'. It is a 'capital improvement' and will be used to adjust the depreciable basis of the property when it is placed in service as a rental.
I'm sure your wallet can't tell the difference between an expense and a capital improvement at this point, but that's how the tax code classifies them.
Best of Luck!