Taxes on Future Rental Property

2 Replies

The home I'm currently living in will become my first rental at the end of January 2021.  I have it listed now on multiple sites and put a lot of rehab into it in the 2020 year.   

Since it was not a rental in 2020, am I able to list capital expenditures during the year of 2020 on my taxes when I file in 2021?  I hope that makes sense and I appreciate any advice! 

@Eric Schroeder

I believe this is what you're asking:

You're spending $XXX on property improvements in 2020, preparing to make it a rental from Feb 2021. Is this money wasted?

No, it is not wasted. You will be able to start depreciating these expenses once the property becomes a rental in 2021. The exact mechanics of how it is calculated can get complicated though.