Rental property renovations took a year to complete to repair property for sale

Forum|Forum|3 years ago
April 8, 2023
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The rental property was purchased in 2013 and rented until reno started in Jan 2022. We plan to offer it for sale once completed, reno is still underway. What expenses can be deducted for 2022 and when can we claim expenses for the reno?

Not A Product Question

AnnetteB6

Unless the property is still advertised and available for rent, then you will not be able to deduct any rental expenses such as utilities or insurance.

You can still claim property tax as a deduction on Schedule A itemized deductions. You may still claim mortgage interest if the property is your only other property other than your main home.

The expenses for the renovation will be added to the basis of the property and will be taken into account when it is sold.

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