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Updated over 5 years ago,
What happens to expenses if I move into rental property?
I am buying a rental house with proceeds from the sale of a rental duplex. I plan to renovate the house. There is a possibility I will ultimately move into the rental and sell my current residence. I know I would then have to pay the deferred taxes from the sale of the duplex but what happens to the expenses I took on the rental house during the renovation? What do I need to do to still qualify for the tax deduction on the expenses? Do I have to rent it for a certain period of time before I move in? If so, what happens if I can't find renters and move in without having rented it?
Thanks for your help!