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Updated about 8 hours ago,
Utilities and Interest during remodel Basis or year deduction
Good day, I bought my first 2 properties in 2024. I purchased then started the remodel before trying to rent. One was completed and rented in OCT, the other I am not done with and will be in service Feb 2025. I understand the basis is all the remodel cost or labor and materials. I turned on utilities and kept them till the tenant took over on the one and still have the other. I also paid interest on the loans.
Is the utilities for the house that is completed and rented a expense deduction for the year or does it go into the basis?
Is the utilities for the house that is still vacant an expense deduction for the year or does it go into the basis when completed?
Is the interest for the house that is completed and rented a expense deduction for the year or does it go into the basis?
Is the interest for the house that is still vacant an expense deduction for the year or does it go into the basis when completed?
Thanks for the help.