Deducting remodel; owner occupied ? W-2?

[Alexander N.]

Hello BP!

I have a rental property (My first purchase. 2 units, both vacant) - One was remodeled before purchase, the other I occupy while I remodeled it to be in rent-able condition (mostly the kitchen, not fun). I spent about $25000 to repair and remodel it, can I deduct this expense and add it to my rental income loss, and how? Also, can any of the utilities, maintenance etc expenses as well as the remodel cost be used to offset my income from my W-2 at my day job? 

I purchased the property mid October of 2019. New to all of this, but I feel like I'm seeing conflicting info from my "due diligence Googling"

Thanks, and hope everyone is staying safe/positive! 

Alex

[Natalie Kolodij]

You can't deduct any thing on that unit. 

It's currently your primary home. Repairs or improvements on your primary are not deductbile. 

Once you move out and that 2nd unit becomes a rental as well then all of the money you're spending now on renovations/improvements will be added to the basis for that 1 side. 

So the depreciable basis for that 1/2 will be higher by those improvements. 

Make sure when depreciation is set up you don't start off depreciating the full building value- only the portion for the side that's currently a rental.