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I own a house in Costa Rica that I am fixing up to rent. Can

I own a house in...
I own a house in Costa Rica that I am fixing up to rent. Can I deduct the expenses, even if I get no income this year (it is up on a web-site, but may not rent)?
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Answered in 4 minutes by:
7/2/2009
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
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Hello costarica,

You may start deducting expenses as soon as you have the property available and advertised for rent. It does not matter if the property actually ends up being rented, as long as it is available and actively advertised for rent. Expenses that you incur prior to that time must be added to your basis in the property, and your basis is then depreciated over a period of 27.5 years.

Minor repairs which you make to the condo may be expensed as maintenance and repair expenses. However any major expenses you would have for things such as a new roof, new A/C unit, new carpeting, etc. would also be added to your basis and amortized over the 27.5 year period.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you costarica.

Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
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