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Updated over 10 years ago on . Most recent reply

User Stats

118
Posts
25
Votes
Frank M.
  • Commercial Real Estate Agent
  • Sudbury, MA
25
Votes |
118
Posts

What Pre-Service expenses are deductable?

Frank M.
  • Commercial Real Estate Agent
  • Sudbury, MA
Posted

My 3 family purchase is almost ready to rent, just over 6 months renovating. 

I understand "Make-rent-ready costs are not deductible." My question is what expenses along the way are a deduction this year? Property taxes? Utilities? For sake of simplicity, let's assume I list the property to rent on January 1, 2015, so that's the "in-service date." 

I'm just trying to understand what actually gets written off this year. One last point - there's no mortgage yet. I wrote a check from my home equity line. I'm expecting that the interest there gets treated as tapping that line for anything, and is a deduction on my own Schedule A, and doesn't hit Schedule E at all. 

Looking forward to getting this one rented and seeing where the numbers fall after the first few months.

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