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Updated over 6 years ago,
Quick tax Q about expenses vs depreciating rehab
Hi!
I just had a, hopefully, quick question regarding my situation and if my assumptions about expenses are correct.
I'm currently rehabbing a property I bought and isn't "in service" right now. Not much has been done yet but i was planning to advertise to put it in serviceable status. The reason for this is to claim as much expenses up front rather than depreciate it.
Assuming my only passive losses this year are expenses due to repairs from rehabbing an in service rental. Are all the EXPENSES going to be passive losses I can carry forward? I just want to make sure i won't lose any losses doing it this way vs increasing my cost basis by rehabbing a property that isn't in service.