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I bought a house at a tax sale last year. It needs a lot of…

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I bought a house...

I bought a house at a tax sale last year. It needs a lot of repair before I will able to rent it. Can I deduct the amount I spent on it last year even if there has been no rental income?

Submitted: 5 months ago.Category: Tax
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2/6/2018
Tax Professional: Robin D., Senior Tax Advisor 4 replied 5 months ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,220
Experience: 15years with H & R Block. Divisional leader, Instructor
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Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

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Tax Professional: Robin D., Senior Tax Advisor 4 replied 5 months ago

All your costs get added to the cost of the house and increase the BASIS. When you make it available for rental you can depreciate at the higher amount.

You do not deduct those costs yet.

Please let me know if you need more information.
If not then please scroll up to see the STARS to rate so I am credited.

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Customer reply replied 5 months ago
Ok, thanks.
Tax Professional: Robin D., Senior Tax Advisor 4 replied 5 months ago

You are most welcome.
A positive 5 star rating is appreciated so I am credited for assisting.

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Tax Professional: Robin D., Senior Tax Advisor 4 replied 5 months ago

Thanks for using JustAnswer

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