Taxes - Deducting Rehab Expenses, Available to Rent or Not??

[Ted Klein]

I had recently purchased a duplex with one inherited tenant. The other unit needed a complete rehab. When is the property deemed available to rent? Would that be the date of purchase or the date that the rehab was completed? As I recall, this impacts the ability to deduct the rehab expenses. How would this best be handled to allow the rehab deductions?

[Michael Plaks]

@Ted Klein

I believe there will be some debate about this topic.

My position (until proven wrong) is that the duplex is one property, and you can count the date of purchase as the date of service for the entire property.

Warning: it still does not allow you to just deduct the entire rehab. Some parts of the rehab may be deductible, and others will have to be slowly depreciated.