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Level 3
March 25, 2024
Solved

Preparing a rental house for sale

  • March 25, 2024
  • 1 reply
  • 8 views

A client did not rent his property the entire year.  He is doing a major renovation to prepare it to sell. Can he deduct utilities and other expenses that are not directly part of the capital renovation project on the current year return? I'm finding conflicting answers in my research.

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Best answer by IRonMaN

Even the utilities 

1 reply

IRonMaN
Level 15
March 25, 2024

If he is preparing to sell, those costs would be part of his basis when he sells it.

Slava Ukraini!
bebopAuthor
Level 3
March 25, 2024

Even the utilities? I thought basic expenses like utilities do not get added to basis.  Only expenses directly related to the renovation.

IRonMaN
IRonMaNAnswer
Level 15
March 25, 2024

Even the utilities 

Slava Ukraini!