Utility expenses for taxes

[Mark Forest]

I have already had my question answered here about having to capitalize fix up costs prior to getting a tenant inside the rental. Are utility expenses (electric, gas, water) incurred before getting a tenant allowed to be expensed for tax purposes or do I also have to include these with the initial cost?

[Kyle Meyers]

I agree with Steve and Marc that you have to capitalize the expenses. However, you only have to do this until the property is available for rent, not until you have a tenant.