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I have a first year rental home and my gross income was thirty thousand. But my bills to upgrade totaled seventy thousand. Is this amt ok to deduct on my taxes?

Forum|Forum|7 years ago
June 6, 2019
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First year renting Home. It’s a small business I started that I provide services for through a managing company.

TurboTax Home & Biz Mac

Best answer by KrisD15

No, expenses can only be reported when the unit is ready and advertised for rent. If you spent 70,000 to upgrade before the unit was ready to rent, add this to the basis of the property and depreciate.

You will report future rental income and expenses on a Schedule E.

KrisD15Answer

No, expenses can only be reported when the unit is ready and advertised for rent. If you spent 70,000 to upgrade before the unit was ready to rent, add this to the basis of the property and depreciate.

You will report future rental income and expenses on a Schedule E.

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K

kwjzAuthor

So many of the improvements to my home have to be Individually depreciated? Or do I have to add it to the price I paid for the house , minus the land? I purchased the house last year . The house was being renovated during the time it was rented.