Also, what’s your filing status (single, head of household, married filing jointly).With the doubling of the standard deduction, itemizing your interest is not as valuable as it use to be.

LLC or Sub S to be able to maximize tax deductions.  

Deduct it from their deposit when they move out.

Can I deduct the junk removal and moving expenses? 

Can I issue him a 1099 at the end of the year and deduct the interest? 

I would wait until the next rental group to be in before making larger changes like that unless it's just added a condenser to put in Central Air bc Central Heat is already in place and you need the tax deductions.

(interest on the debt might not be deductible) I think this is what you are asking. 

On the occasions where I do have to make deductions, I do it only for legitimate damage or money owed and I do not nickel and dime them for every little thing.Ultimately it just comes down to treating people fairly and how you want to be treated in this business.

There is a new 20% pass through deduction you may qualify for that could help you, but not everyone qualifies.

203k Benefits to Buyers/Borrowers (not all inclusive) Renovate home with little/no additional out-of-pocket expenseLow down payment (3.5%)Combine purchase/refinance + rehab funds into one low-interest, tax-deductible mortgage which is based on the improved appraised valueInclude mortgage payments into 203k if home is not livable during renovationsSubmit a strong purchase offer if presented properly to sellerBuyers face less competition from other buyers to purchase fixer-uppers, foreclosures or older homes that are outdated Better opportunities for "good deals" on home purchases Ability to purchase properties that may not meet FHA standards and complete the repairs/improvements AFTER the home is purchased.