I bought a rental property in December 2021. I have been renovating the property all through 2022. How do I document my expenses for when I finally get rental income?

Forum|Forum|3 years ago
February 9, 2023
1 reply
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Turbo Tax wants to Remove this property from my tax return. Will I lose the expense tax deduction?

TurboTax Premier Online

ThomasM125

You wouldn't be allowed any expense deductions if you removed the property from your return. The renovations you added would need to be set up for depreciation when you put the property back up for rent. You could leave the property in TurboTax for the current year, but if you deduct expenses such as property taxes and mortgage interest you would be at risk for an audit since you don't have any income to absorb the rental expenses. The best thing might be to remove the property and then enter it back in when you put it back up for rent.

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