Tax question regarding write offs

[Wesley Myers]

In the process of getting our STR ready for next season to begin renting in March 2021. We've been spending quite a bit of money updating but I just realized we won't be able to claim these expenses in 2021 when it's producing income because we're spending the money now. Is this correct? Really don't want to wait until 2021 to finish with the updates as we're trying to get er done. Am I missing something here?

[Jon Crosby]

@Wesley Myers  Disclaimer: I'm not a CPA (not even close) so please seek professional advice before making any commitments.  :)

I think I know what you are referring to, but I think if you can 'activate' the property this year you might be able to squeeze in the expenses. So, perhaps just create the listing on one platform (VRBO) and then block your dates out until next Spring...then you have 'activated' the rental so any expenses you incur from that time on theoretically can be accounted for. That being said, it's likely all CapEx if you are doing big renovations, so you will have to depreciate most of it anyway, so might not be worth the effort or trying to find a loophole there.

Curious to see what somebody who actually knows what they are talking about here has to say though.  LOL  :)