Major rental house renovation

Forum|Forum|1 year ago
March 12, 2025
1 reply
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I have spent $100,000 on a major renovation of a rental

Best answer by Cecilia30

I appreciate the extended response. While at the moment, the several renovations this year have all fallen under the first situation you described, I do have one next year that will fit your second scenario.

AnnetteB6

If you are asking how to claim this on your tax return, then it depends on whether the property is already a rental property or not. Either way, it will be depreciated and not claimed as an expense by itself.

If it has not been placed into service as a rental yet, then the cost of the renovation will be added to the basis for depreciation of the property.

If the rental property was still being advertised and available for rent during the time the work was being done, then the cost of the renovation will be depreciated as an Asset on its own as a component of the property itself, over 27.5 years.

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