I'm new to the income property game and looking for some tax advice. I did a cash-out refi on my primary residence in Nov 2019 and purchased a fixer rental property. I spent 3 months remodeling and placed up for rent in Mar 2020. I have a few questions about how to handle this tax wise:
1. Do I include anything on my 2019 taxes or do I start claiming on my 2020 taxes next year because the 'in-service date' is March 2020?
2. I know I need to account for 100% of the cash out going toward the rental but what counts? I understand only major upgrades that increase value and not general maintenance count but what about points, closing costs, inspections, appraisals, etc.
3. For depreciation I was thinking about having the rental re-appraised because I bought for $460K and remodeled myself for $20K which only about $10K would qualify for 'upgrade'. I know it would appraise for around $520K which is $50K higher than what I could depreciate using the buy + remodel costs method. Does that seem like a solid way to handle?
It's my understanding that I eat the mortgage, utilities, etc. from Nov to Mar because it was not placed in service until March.
Thank you in advance for your time and input.
