IRS deduction rules around STR purchase to listing

[Lori Sullivan]

I am having a hard time finding if IRS has rules if there is a time limit (purchase to in service date) on what can be deducted.  

Scenario - STR home purchased in August 2023. working on home to set up for STR August to Feb 2024. The property has not been ready to list until now. I know the things that can be deducted (furnishing, locks, etc) but does IRS have a time limit from purchase to in service date? And what about expenses in 2023 when the property was not listed?

[Michael Baum]

Hey @Lori Sullivan, @Ian Tyndall has it correct. If you have been working on it but not listed anywhere, you can't deduct any expenses until next tax cycle.

Also, I would highly suggest you get yourself a CPA that can help you. You really need to get advice on a tax strategy so you don't run afoul of the IRS.

We had to do work on our lake house, but I put it up for guests asap while we were working on it. I simply took known guests. People who are friends, or family. That sort of thing.