Tax Law (Questions About Taxes)/Schedule E


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.

The real estate has to be available to rent in order to take deductions associated with real estate ownership

So from what you tell me, you will have a zero schedule e loss in 2012

Unscrupulous (and, generally $hitty) tax return preparers will take the deductions for 2012 but if property is not available for rent, that would be the wrong answer

Good luck

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


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