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Question

Purchased second home that has remained empty due to renovations. Can the second home be classified as rental property even though it was not rented all year?

Forum|Forum|1 year ago
January 31, 2025
1 reply
0 views

Plan to fix purchased second home, then move into it afterward. Can the mortgage interest be deducted as rental expense even if home was not rented all year?

No. Expenses for rental property can only be deducted if the rental home is 'available to rent'. While it is under renovation you can deduct taxes and interest as itemized deductions on your federal return and add up all of the renovation expenses to enter as a capital asset to depreciate after the rental home is active.

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namedeirosAuthor

Thank you for your reply. That makes sense.