Do I depreciate and claim ordinary expenses while rental property is vacant for 2 years while undergoing a full gut? It was rented for 2 years prior. Never changed use

Forum|Forum|1 year ago
November 21, 2024
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This is vacant but undergoing extensive repairs. Was put into service in 21 and rented in '21 and '22. There is no personal use or change of use. Hope to get it rented in 2025. Do I still claim depreciation and ordinary expenses on scheduleE?

M-MTax

Do I depreciate and claim ordinary expenses while rental property is vacant for 2 years

If you took it out of service.....it wasn't available for rental use.....then depreciation stops and you cannot deduct ordinary rental expenses. There's an exception when a property is temporarily idle as shown in IRS Pub 527 but 2 years is a long time and might not be considered "temporarily idle".

Continue to claim a deduction for depreciation on property used in your rental activity even if it is temporarily idle (not in use). For example, if you must make repairs after a tenant moves out, you still depreciate the rental property during the time it isn’t available for rent.