Pre-Rental Tax Deductions, and Military Discount?
Hello!
Reposting this because I just realized there is a section committed SPECIFICALLY to Tax Questions.
I currently have a 2BR/2BA Condo that I am house hacking, renting out the secondary bedroom and using that income to conduct renovations/upgrades. I got it using a VA loan, and I hit my year residence mark in April, with my intention of turning it into a rental property at the end of this year, or early next year, when I get out of the military. I still have some work work to do before I can get it in good enough condition for it to cash flow, right now if I were to rent it I would most likely break even (I bought this place before doing the calculations, and discovering BP)
My question is this:
Am I able to tax deduct expenses I use to get this place upgrade, since I PLAN on making it a rental property? Or can I only start deducting on things once it becomes a full time rental property that I'm not living in?
Also, does the fact that I purchase all of my materials for renovation using a military discount from Lowe's? It's states that it was discounted on the digital receipts from them.
Thanks,
Bruno