City Restrictions on Short Term Rentals - Tax Implications

[Grace Woods]

BP Team, My husband and I are considering buying a vacation rental in Manzanita OR where licenses for short term rentals are restricted. The typical license wait list time is 6-12 months. We are ok with taking that time to fix up the rental for future VRBO guests. My question is regarding tax deductions -- would we be able to deduct renovation, furniture and other miscellaneous expenses purchased during this 6-12 month "wait" period? Thank you! Grace