Question about home improvement after half year renting of my house

Forum|Forum|2 years ago
September 14, 2023
1 reply
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I rented my house for the first half year, after that I used it personally and made some home improvements. Let's say next year I will rent it again, will these home improvements bring any tax benefits/deduction for this year or next year?

I saw that TurboTax asked some home improvements which happened before the renting but my situation is different.

TurboTax Premier Online

A

Anonymous_

Employee

it's not exactly clear as to how you are handling this scenario nor what you are renting (the entire house or a part of the house) but if you continue to place your house into service and then take it out of service, you will have to continue adjusting your basis each time.

You would reduce your basis for depreciation deductions taken (or should have been taken) and increase your basis for the cost of improvements made.

W

wleuterAuthor

Employee

@Anonymous_

Thanks for your answer.

Let's say I rented my whole house from Jan to Jun in 2022, then I moved back to my house and did some home improvements, then I rented it again from Jan to jun in 2023.

Can I use these home improvements to do depreciation for 2022? (But they happened after I rented my house in 2022)

Or should I use them for 2023?

Thanks again.