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Updated over 1 year ago on . Most recent reply presented by

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John Wisdom
  • Miami, FL
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13
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Initial rehab deduction

John Wisdom
  • Miami, FL
Posted

From everything I have read, I’m not able to deduct my rehab expenses until the rental property is put in service, or advertised as available for rent. Should I just start marketing it now on the rental websites with minimal pictures so that it can start the clock on availability and allow me to deduct my rehab expenses? 

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Ashish Acharya
#2 Tax, SDIRAs & Cost Segregation Contributor
  • CPA, CFP®, PFS
  • Florida
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Ashish Acharya
#2 Tax, SDIRAs & Cost Segregation Contributor
  • CPA, CFP®, PFS
  • Florida
Replied

That is not 100 correct. If the property was STR, you don't need to be in service if the property was STR before you bought it.

Just advertising doesn't help. The property has to be ready and available to be rented. You cannot advertise a property that has holes in the bathroom just to meet the PIS requirements. 

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