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Tax Law (Questions About Taxes)/Rent expenses during repairs

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Question
If I settle in December on a property I intend to rent after repairs are made in about 2 months, can I complete a schedule E for the property on my 2012 IRS return for closing and related expenses, even the house will not be ready to rent? I have other rentals, but never settled in a year that the property was not ready to rent. Or, should I delay settlement until January 2013? Thank you very much.

Answer
You need to really understand the IRS rules on rental income and what is deductible and when

I am getting worried that you are wandering  around with 60 or 70% knowledge (if that)  and thinking you really have the answers,  which you clearly do not

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Tax Law (Questions About Taxes)

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MEdusa

Expertise

Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).

Experience

19 years cpa. ms tax. NOTE: My discussions are only a general information and do not constitute tax advise without entering into a specific agreement and executing an engagement letter; This free chat is nothing more than general information and should not be construed as tax advice nor does my response or replies imply an agreement to provide client specific advice or other guidance for purposes of avoiding IRS tax or penalties and should not be relied upon without your own validation and confirmation of the how the discussion may fit your facts... Not having all the facts and/or not having a direct client relationship prevents me from providing the most accurate replies as possible and I highly suggest using a local CPA to provide you with written advice and guidance. Taking matters into your own hands is much akin to trying to land an airplane without a license. It is easy to FLY a plane, but LANDING is when critical experience is key. In short, caveat emptor; do your homework and don't just rely on free chat board advice anywhere, anytime.

Organizations
AICPA, CSCPA (Ct society), National Tax,

Publications
a bunch.

Education/Credentials
MS tax and other post graduate coursework

Awards and Honors
variety including Summa Cum Laude

Past/Present Clients
I don't disclose or kiss and tell

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