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Updated about 4 years ago on . Most recent reply

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Robin Ryan
  • Los Gatos, CA
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Rental Expenses Incurred Before Property is Rented

Robin Ryan
  • Los Gatos, CA
Posted

We moved from our primary residence 4/25 and spent a few months painting, reflooring, etc before deciding to rent it instead of selling.  It was eventually rented on 8/15.  Question is - are mortgage interest & property taxes deductible in the period between 4/24 and 8/14?  What about the improvements-  are those added to the basis and depreciated effective 8/14?  Thank you!

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Ashish Acharya
#2 Tax, SDIRAs & Cost Segregation Contributor
  • CPA, CFP®, PFS
  • Florida
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Ashish Acharya
#2 Tax, SDIRAs & Cost Segregation Contributor
  • CPA, CFP®, PFS
  • Florida
Replied
Originally posted by @Robin Ryan:

We moved from our primary residence 4/25 and spent a few months painting, reflooring, etc before deciding to rent it instead of selling.  It was eventually rented on 8/15.  Question is - are mortgage interest & property taxes deductible in the period between 4/24 and 8/14?  What about the improvements-  are those added to the basis and depreciated effective 8/14?  Thank you!

 Generally, the work you did after you moved out will be added and depreciated.


From practical standpoint, I would just deduct The mortgage interest and the taxes after you moved out. Shouldn’t be material to sweat over it. 

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