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Preparing a rental house for sale

bebop
Level 2

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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IRonMaN
Level 15

Even the utilities 


Slava Ukraini!

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5 Comments 5
IRonMaN
Level 15

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


Slava Ukraini!
bebop
Level 2

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

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IRonMaN
Level 15

Even the utilities 


Slava Ukraini!
bebop
Level 2

Thank you.

IRonMaN
Level 15

You betcha!


Slava Ukraini!
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