Tax Articles
Introducing Our Firm
Our Services
Real Estate Taxletter
Need Help?
Other Websites
Site Map

Find us on Facebook
Follow me on Twitter
Connect on LinkedIn
Connect on Google+

When do I deduct expenses to fix and maintain a property?

February 18, 2004

From:  Anonymous
Date:  Thu, 29 Jan 2004

I lived in a residence for two years, until October, 2003. From October, 2003 through January 15, 2004, I had expenses to fix and maintain the property. On January 20, 2004, I leased the property.

Should I deduct my expenses on my 2003 income tax return or my 2004 income tax return?

Thanks Michael.


Date:  Mon, 02 Feb 2004


Repair and maintenance expenses are deductible when paid starting the date you make the house available for rent. That is also the date you start depreciating the residence. Improvements like carpeting, remodeling the bathroom or new appliances must be depreciated, not deducted. Remember the deductions may be subject to limitation under the passive activity loss rules. See Publication 527, Schedule E and instructions, and Form 8582 and instructions.

Good luck!
Mike Gray

We have more answers to frequently asked real estate tax questions! We also offer up-to-date information about new tax real estate tax developments in Michael Gray, CPA's Real Estate Tax Letter.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this website was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.

When do I deduct expenses to fix and maintain a property?

Home | Real Estate Taxletter | Articles | FAQ | Introducing Michael Gray, CPA | Need Help? | Other Links

Michael Gray, CPA
2190 Stokes St., Suite 102
San Jose, California 95128-4512
(408) 918-3162
Fax (408) 998-2766
email: mgray@taxtrimmers.com
© 2016
Subscribe to
Michael Gray, CPA's
Real Estate Tax Letter