Tax Treatment - Expenses between two Rentals

[Priyanka K.]

Hello dear friends!

I am a buy and hold investor. I know any expense before I buy my first rental can be treated as start up cost but I would like to get some input on tax treatment of expenses incurred  between two rentals. Since I am already in rental business after my first rental, how  do I treat these costs before I buy my second rental, expenses on deals that did not work out. Examples-

- Car mileage for showings 

- Inspection

- Option money

Thanks for your input!!

priyanka