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Updated over 12 years ago,
Am I business owner -- and if so, can I deduct start up expenses for preparing a rental?
Hi everyone,
I was recently gifted a house that I am currently living in but would like to move out of and rent in the very near future. The house needs some major repairs - pool, possible extermination of pests, etc. According to Every Landlord's Tax Deduction Guide the IRS will consider me a business owner if I actively manage the property. So, before moving out of the house, can I get the repairs done and then deduct them as start up expenses? Or do I first need to move out to be able to deduct them as start up expenses? Or, would I not be considered a business owner, in which case I couldn't deduct start up expenses at all?
Thank you!