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January 4, 2020
Question

Deducting expenses on an inheritance property prior to being deeded

  • January 4, 2020
  • 1 reply
  • 0 views

I am inheriting my parent's house in June. I have renovation expenses that will be completed in February. Can I deduct those expenses if completed prior to owning? I plan on making it a rental property after I own it. No one is living there now, the property is currently in a trust and will be transferred once the will is finalized in June.

    1 reply

    Critter
    Employee
    January 5, 2020

    They are not currently deductible ... the reno costs are added to the inherited basis for depreciation purposes once the house is placed into service as a rental.