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Updated about 5 years ago,
How to report expenses on a rental when adding an addition?
We decided to add an addition, master bedroom/bath, to our rental house. It did not go as planned and need advice on how to report expenses with no current rental income on my tax return. The rental house was shut down in July 2018 and the addition was suppose to be done in 4 months. The contractor did not begin until Oct 2018, (contractor fell off truck and broke his ribs, his business partner died, etc.) it is a long story, so I will not get into it. Eventually we fired the first contractor (losing $$$$$ we paid him) and hired a new contractor who is now reworking some of our former contractors work and finishing the addition. So there has been no income from that property and a ton of expenses, how do I report this on my tax return. Do I wait till the rental property is back in service to claim deductions and income?