deductions against vacant property

[Jennifer Mora]

I've been renovating a duplex since June, 2011 (I know. It's almost done.) Had a tenant prior, but it's been vacant since then due to the remodeling. I know I can claim the 2011 deductions because I have rental income to offset them. What about 2012? Can I still depreciate and deduct expenses if the property was vacant and unrentable?

[Account Closed]

The property hasn't been taken out of service. You are still allowed to deduct ordinary and necessary expenses related to maintaining this property. Of course anything related to the remodel must be capitalized.