Last year I bought a property and made a lot of repairs to it before it was available for rent. None of these repairs were actual improvements, but mostly fixing existing problems such as electrical, plumbing garage door issues etc etc. So for tax filing purposes, after buying a SFR property and before property is available for rent, are any repairs done to it is considered improvement? Or can I take the deductions as repair? What about the supplies I bought?
Thanks for your help.
Deducting repairs
Repairs are deductible in the year you spend them. Some items are considered capital improvements and thus are amortized over their useful life (example roof or furnace).
Sounds like what you did were repairs.
FYI, if you fix and flip, then it’s all added to your tax basis.
[QUOTE=Bob.R;885193]I believe that repairs made BEFORE being ready as a rental would not be deductable. However, it would be added to the base property value for depreciation. You may want to check with a tax person.[/QUOTE]
Maybe a question that would be better suited for a non-legal forum.