cpa72
Level 3

Afternoon, all,

Thank you for any guidance in advance.  A partnership is purchasing residential real estate with the intention of renting it to a tenant after improvements et al are done.  My question is how to handle the operating expenses (re tax, maintenance, utilities et al) prior to the property being available for rent.

Capitalize them or expense them as incurred.

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Just-Lisa-Now-
Level 15
Level 15

If you google  "deduct operating expenses prior to rental being available to rent" you'll probably find what youre looking for.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Norman2001
Level 7

Google is a good resource. Also, NOLO has a good book, "Every Landlord's Tax Deduction Guide".