Question

I have property that I am setting up a house on for rental property. Can I deduct the cost of setting up this prop and how do I do that if so?

Forum|Forum|5 years ago
May 2, 2021
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What do you mean by "setting up" a house? Are you building a house on the property? Maybe you're moving a mobile home or locating a pre-fab on the property? Or does the property already have a structure on it, that you're just preparing to rent for the very first time?
If the latter, the cost of preparing a property for rent for the very first time is not deductible at all. The only exception to that is property improvements, which are capitalized and depreciated over time. 27.5 years for residential rental real estate located in the U.S.