Rehab costs on Schedule E Line 19 Other?

[Haiyang A.]

I have a tax-related question. I acquired an additional property in October last year and incurred rehab costs in the last two months. Since it’s not my first property, I think I can deduct operating costs on Schedule E without worrying about “date placed in service” issue, but I also read it here on the forum that the related rehab cost should better be placed on line 19 (Other list) on Schedule E, otherwise, it may affect Debt-to-Income calculation when it comes to refinancing. How will a bank view this in relation to underwriting a loan? I don’t really understand this part. Should these rehab costs then be placed on Schedule E line 19 (Other list)? Any inputs will be highly appreciated.