Schedule E Rental Property

[rose323]

The client purchased a home in Kansas in 2023, and they are from California. She wants to report her expenses, but no income was recorded since the house is still in repair. She has no liability and is receiving a refund for her two dependents and a w2. Is it worth adding to the return? Or can the expenses carry forward?

[sjrcpa]

"She wants" is not determinative of the tax reporting.

Was the house available for rent in 2023?

[rose323]

Sorry for my grammar, that's the way I speak. The house is not posted for rent. 

[sjrcpa · Accepted solution]

If it was not available for rent in 2023 nothing is deductible. All the repair costs get added to basis.

When it is available for rent, whether or not actually rented, is when you start to claim deductions.

[rose323]

Great, Thank you the help 🙂

[sjrcpa]

You're welcome.