Deducting Startup Costs for STR Taxes

Deducting Startup Costs for STR Taxes

Investor · Boise, ID · Member since 2020 · 33 posts · 10 votes

Hello! We purchased and started renting out a short term rental in 2019. There was about a period of 1-2 months that we worked on getting the house fixed up and furnished prior to listing aka the pre-revenue stage. 

I'm trying to understand how to properly write off/capitalize these expenses on Schedule E. From what I understand, you can write off up to $5000 in startup costs and depreciate the remaining?

Where is Schedule E do you write off the $5000? Is it under miscellaneous expenses? Thanks!

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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    6y

    You should have your local tax professional help you with this.

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