Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.
Are you talking about doing a tax return for 2009?
Well, basically all costs related to the remodeling of your house prior to rental would be capitalized and added to your cost of the property would you would then depreciate over 27 1/2 years beginning when you placed your house in service and it became available for rent.
Then any other ongoing costs would be deductible as rental expense.
so are you saying HOA fees & utilities count as cost of remodeling?
When you figure the depreciation, you would have to allocate the cost between land and building, usually based upon the percentages in the real estate tax assessments, as the land isn't depreciable.
All expenses during the construction period should be capitalized as part of the project.
Cool. Lastly, any advice for getting a revised 2009 return accepted by IRS before it's too late, i.e. if I'm running late, can I Fedex (or USPS overnight) by April 16, 2012 and that will be good enough?
The statute of limitations on the 2009 tax year doesn't expire until 4/15/2013, assuming you filed a return for 2009, and are talking about filing a 1040X for 2009. For future reference, it isn't when the IRS gets it, its when you mail it that counts to determination timely filing.
U R Welcome
Please remember to click on the green "ACCEPT", or the "smiley face" as appropriate; that is the only way we get credit for our work, even if you are on a subscription plan. Feedback, if you have time and bonuses, where you think they are warranted, are always most appreciated. Before or after you ACCEPT, I will be happy to answer any additional follow-up questions you may have. Thanks again for using our service. If you'd like to contact me again, in the future, just ask for "Steve G" at the beginning of your question.
i will : )