Goshen, NY · Member since 2017 · 60 posts · 14 votes
If I purchase a home as a second home, then decide to rent it out a few months later as a permanent rental property, am I able to still deduct repair / maintenance / insurance / other property expenses as I do on other rental properties? What should I be considering?
If I purchase a home as a second home, then decide to rent it out a few months later as a permanent rental property, am I able to still deduct repair / maintenance / insurance / other property expenses as I do on other rental properties? What should I be considering?
Yes, you just need to establish value based on your in-service date. Let's say you purchased the property January 1, 2020 and advertise it for rent on June 1, 2020. You determine the fair market value of the property as of June 1, 2020 and deduct land value. That becomes your basis for depreciation. Any expense after June 1, 2020 can be deducted, including mortgage interest and taxes, but only as of June 1. If you incurred expenses January 1 through June 1, the expense or prorated portion would not be deductible.