New GA landlord with tax questions

[Silvia B.]

After researching online and in landlording books I am still alittle confused about deductions / depreciations and business vs property owner. Can someone please tell me if I have this info correct?

Bought my first and only rental property in April. I do not have a business license. Did some repairs and the property was placed in service July 1. Unable to find the right tennant until Nov 1. Between July and Nov we took the opportunity to do some more repairs and replacements. I am actively involved in the property as I do the yard maintanence, etc. but am considered an investor rather than a business owner, according to the landlord tax classifications.

If I understand it corectly, and since it is not considered a business:
1. I cannot take the initial "business start up "deduction of $5000.
2. all repairs and supply costs from April to July need to be added to the initial cost basis and depreciated over 27.5yr.
3. all appliances, blinds, lights etc are depreciated from the July 1 "placed in service" date.
4. all supply,repair, maintanence costs after July 1 are deducted this year
Thanks in advance for any input...I'm a newbie at this so please be kind.

[Silvia B.]

Mitch~ I don't think you can deduct your own labor, only what you pay out to someone else for their labor. My husband built a new front porch on the rental. It started out to be a repair but we found some rot and decided to replace it. The supplies will be depreciated but his time/labor cannot. I have been reading "Every Landlord's Tax Deduction Guide" for the past year and it has been very helpful with most things. But, yes, there are so many gray areas that it gets confusing at times. I really want to do whatever wil be best as far as IRS goes since they are the bottom line in returns.