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In terms of holding a property for resale, you cannot depreciate that property. You can only depreciate business property that has been placed into service. Holding for resale is not placed into service
If you got a tenant for the property, you could then begin depreciation. But not until the property is to be leased.
You would not depreciate, rather deduct the cost of the house and the cost of the rehab from the sales price upon the ultimate resale of the property.
Also, any expense incurred on the property is not deducted in the current period. It's added to the basis, which reduces the gain on your sale.
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For one of the property, I have placed ad to rent out a month back but not rented out yet. Could the depreciation and expense counted from when I place the AD or how this will work.
Yes, from the point of the ad forward you could, so long as you actually intend to rent it out
If you really have no intentions of renting the property, then you cannot deduct depreciation and repairs.
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