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Updated almost 8 years ago,
Rental Property Renovation and Tax Implications
Keep getting conflicting advice. Here is the situation. Bought a single family home in 2016. Bought it as an investment property with the intent to fix up and rent. Renovation took longer than expected (don't they all), and was finally able to list the property as a rental in 2017. For my 2016 taxes, can I deduct anything? Property taxes, mortgage interest,renovation costs? List of improvements is below.
I have some people telling me that because the property was never listed as a rental in 2016, then nothing can be deducted. Others are telling me that the intent to rent was always there so deductions should be available.
Not sure who is right and not sure if this is simply a deferral to the 2017 tax year, so the deductions would be applied a year later?
Any advice is appreciated.
List of Improvements:
Gutted Kitchen and Bath
Added Shower to small bathroom
Replaced all windows
Replaced all doors
Painted all walls/ceilings
Refinished wood floors
Added sump pump system
Installed Fence