- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
@info2 wrote:Thank you team for the support.
Facts are, building is under rehab, so I want to suspend losses since it's currently unavailable for rent.
Rehabbing rental property usually does not take it out of service (see below for part of Publication 527 about depreciation). It is still a rental property, so depreciation and expenses are still taken. You don't have the option to not use them.
If you truly think it is taken out of service ... it is not a rental. There are no losses because it is not a rental property. You can't take (or suspend) expenses for a non-rental property. It might be possible to capitalize those expenses into the Basis of the building, but you can't just suspend the expenses then take the full amount whenever is convenient for you.
Continue to claim a deduction for depreciation on property used in your rental activity even if it is temporarily idle (not in use). For example, if you must make repairs after a tenant moves out, you still depreciate the rental property during the time it isn’t available for rent.
You stop depreciating property when you retire it from service, even if you haven’t fully recovered its cost or other basis. You retire property from service when you permanently withdraw it from use in a trade or business or from use in the production of income because of any of the following events.
You sell or exchange the property.
You convert the property to personal use.
You abandon the property.
The property is destroyed.
