Deducting expenses this year?

[Jennifer Schultz]

Hi All~

I just joined BP, and this is my first post. ;) We started investing in real estate in 2017. My husband and I created a LLC- partnership and have purchased 2 single family homes in 2017 that we are painting and making small adjustments to. We did not have any renters in 2017. Can we deduct any of our expenses on our 2017 tax return? My accountant is saying no, because we did not have either house rented out. I just wanted to make sure that we are not missing anything. I was really hoping to have the deduction in 2017.

Thank you in advance for your time in replying!

Jennifer

[Paul Allen]

A rental property can be 'placed in service' without actually being rented. In order to be placed in service the property must be ready and available to rent. Landlords will often use the date they first advertised the property to prospective tenants as the date placed in service. 

So...if your property was ready and available for tenants in 2017, then it was placed in service in 2017, and you can deduct expenses in 2017.

Welcome to BP.

Best of Luck with Your Real Estate Investing!