I have a real estate professional that works full time as an owner and realtor of their company.  She also own a couple of properties that they derive some short term rental income.  Also, during the year, she continue to renovate the properties.  My question is, are the renovations completely deductible in the year incurred or when the properties are completely ready for intended use.  It seems that if the short term income is in the range of 20k for each property and the renovations are in the 30k to 50k range that it doesn't pass the smell test.  I have never had a real estate professional that also has rental property and any guidance would be appreciated.