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Updated almost 8 years ago on . Most recent reply

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Nils-Erik Frantzell
  • Seattle, WA
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Time preparing soon-to-be rental property counts as personal use?

Nils-Erik Frantzell
  • Seattle, WA
Posted

I purchased a new home for use as a new primary residence in January 2016. I moved out of the old primary residence on the 13th and converted it to a rental property by signing tenants 8 days later. I spent these 8 days preparing the house for rent (e.g. installing new carpet, cleaning) and finding the tenants.

From what I understand, I cannot deduct expenses for the property incurred during personal use. Would anyone happen to know if these 8 days count as personal use?

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Steven Hamilton II
  • Accountant, Enrolled Agent
  • Grayslake, IL
2,325
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Steven Hamilton II
  • Accountant, Enrolled Agent
  • Grayslake, IL
Replied

@Nils-Erik Frantzell,

You cannot deduct your time; however, you can deduct your expenses such as the new carpet(capitalize and depreciate it) Cleaning etc all must be added to your basis as of conversion.

  • Steven Hamilton II
  • [email protected]
  • (224) 381-2660
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