Question

Schedule E losses on property undergoing major capital improvement

Forum|Forum|3 years ago
December 26, 2022
1 reply
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Investment property has been under renovations for the entire year, no rental income being collected. Can Schedule E be filed with all itemized expenses and loss be taken for the year?

Critter-3

If the property was rented in 2021 and will be rented again in 2023 after the renovations have been completed Then you can continue to use the schedule E to report all the Holding expenses however the improvements/renovations must be added as an asset and depreciated over 27 1/2 years. In the TurboTax program simply say the property was rented for one day so you can keep the schedule E active.