When can we use tax deductions that cross over 2 years

Tax Strategies
1

Hello,

In January of 2022 we purchased a home to be rehabbed and used as a short-term rental. The initial purchase was funded with a hard money rehab/bridge loan in our business name. We were kind of slow with the rehab ($50,000 in costs) and then the loan was finally refinanced into a DSCR rental loan with that same company in May of 2023. My question is regarding the tax deductions and how this works. We did get an extension for 2022 tax year…are we able to deduct any of the expenses and costs from 2022, such as loan fees, mortgage interest, utility costs, mileage, food, home office, RE taxes, etc.? Or, do we need to hold off and then depreciate everything over the 27.5 years in 2023?

Thank you for your time,

Deanna

2

Thank you for the question. We answered this on our show Ep. 445. Thank you so much!! Mark

3

Thank you so much for answering my question, you two always give the best advice!

I try to watch your videos and listen to your podcasts as much as I can. I might just talk myself into taking your Tax Pro course one of these days. I am an accountant/bookkeeper and love to learn all I can.

Thanks again,

Deanna