Converting Residence to Rental - When to start making upgrades?

[Ryan Baker]

We are expecting, within the next 12 months, to purchase a new primary residence and convert our existing residence (SFH) into a rental/investment property. We need to make several upgrades to the current place in order to make it rent ready- new flooring, new patio doors, new deck, drywall repairs, maybe new kitchen appliances and cabinetry, etc. These upgrades are to get this property to a solid Class B type property and are either just needed in the house (new flooring for sure) or needed to keep up with other rentals in the area.

My question is, from a taxes and deductions standpoint. when can we start making these upgrades in order to claim them as deductions / “investments” into the investment property? Can any of that work be done while we are using it as our primary residence? Or do we have to wait until we move out in order to perform the work and claim them?

Thanks for any input.