Timing of Property Rental Deductions

Forum|Forum|2 years ago
February 29, 2024
1 reply
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One final question on my rental condo: The property was remodeled in October and November and became ready and able to rent on Dec 16. It rented for 5 days in December. There was zero personal use in December. I assume I can claim the appropriate deductions for this small time period and there is no >14 day rental rule since I had no personal use. Is that correct?

PatriciaV

Employee

If you report the income, you can also claim the expenses incurred after it was made available to be rented.

The minimal use rules allow you to rent a home for up to 14 days per year without reporting the income. If you do this, you also can't claim any rental expenses. Any expenses related to the home, such as mortgage interest, property taxes may be reported as normally allowed on Schedule A (Form 1040).

Note that the renovation costs should be capitalized into the cost basis for the condo, since those costs occurred before it was made available to be rented.

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