I just bought a condo for a rental, if I fix it up before I rent it out can I still write those expenses off?

Question

I just bought a condo for a rental, if I fix it up before I rent it out can I still write those expenses off?

Answer 1

Sch E.  if you don't rent before the end of the year, you'll have $0 in rental income and all those rental expenses.  :)

Of course, check with your tax consultant.

Answer 2

If you do repairs before the year of first renting, that becomes part of a capital cost, not a current expense. You will have to treat it just like depreciation.

If you start renting in the first year, you might claim that your repairs were to return the property to its original condition, but technically that rule should mean return it to the condition it was in at purchase.

Small amounts of repair will not be challenged.

Answer 3

Absolutely.  If you rent it out, it will be considered your income, the cost to fix up the place is your expenses, income-expense= net income/loss to be reported on your tax returns.  Check with your tax advisor.