Bought STR in 2023 but didn't rent. Any tax benefits available?

[Matt Doepke]

Hi BP! Thanks in advance for your insights - I just purchased my first real estate investment property a couple months ago (2023) and looking for some tax guidance. 

I purchased a single family home under my LLC and have been renovating it to be STR-ready (weeks away before we launch!). I have not rented it out to anyone yet. I have records of all expenses the business has contributed to the reno.

I am curious what tax benefits I can claim, if any, specifically:

1. There is no income generation to report in 2023, but can the business claim any losses?

2. Can I depreciate the property despite not being rented?

3. Do I need to file a Schedule C/E?

Much appreciated for anyone's knowledge on this topic!

[Michael Plaks]

No, you do not get to choose whichever tax schedule produces the best result. If it is a rental property, it is Schedule E, with very rare exceptions.