Rent ready costs to capitalize

[Mark Forest]

In 2012 I acquired three rental properties. I know that the fix up costs to get them to rent ready are capitalized. What about utility expenses, insurance, and property taxes I paid after closing? Are they also capitalized? Yes I know we take too long to get them ready. I hope to do better in 2013.

[Steven Hamilton II]

Steve Might,

You will deduct those property taxes on Schedule A Line 6. You will capitalize the rest of the costs.

-Steven