Discussion:Rental not rented

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Basic Tax Questions --> Rental not rented
Discussion Forum Index --> Tax Questions --> Rental not rented

Rgtaxservice (talk|edits) said:

12 April 2009
I've never run across this before and would appreciate some guidance...or a point in the right direction.

My client has several rentals. For all of '08, he had one property that wasn't rented. He told me that it will probably be out of commission for a all of '09 as well. He just doesn't have the time or money to get into it and do the renovations. The only expenses incurred for the year and mortage interest, taxes, and utilities. It will not a be a home. Will it get treated as investment property?

What do I did with the mortgage interest and taxes? I was thinking carrying charges but this is not unimproved land.

Can anything be done with the utilities?

I will suspend the depreciation.

Kevinh5 (talk|edits) said:

12 April 2009
either capitalize them or treat them as investment expenses on Sch A

Rgtaxservice (talk|edits) said:

13 April 2009
Kev, can the utilities be capitalized as well?

Larry0434 (talk|edits) said:

13 April 2009
Was the property held out for rental via advertising and other activity?

Rgtaxservice (talk|edits) said:

13 April 2009
No, after the last tenant moved out in Dec 07, the property sat vacant and was not held out for rental. Client had no intention of renting it out until after it was remodeled. In the past, his renovations to his other rental properties had only taken a few months. This one is taking longer due to time and money constraints.

To join in on this discussion, you must first log in.
Retrieved from "http://www.taxalmanac.org/index.php/Discussion:Rental_not_rented"