{ "media_type": "text", "post_content": "I'll be renovating my house (gut all existing bathrooms and kitchen, extend house to make room for an extra bathroom). It's currently my primary residence but I likely have to move in early 2022 to another city where I also own a house and then I plan to rent my current residence via Airbnb. What should I consider from a tax perspective? For example, if my current residence becomes an investment property before or when I renovate, does the renovation count as a tax deductible expense?", "post_id": "614ac769a9e6c6001e9e7659", "reply_count": 4, "vote_count": 1, "bowl_id": "5a5242b78e26290018502ca0", "bowl_name": "The Real Estate Bowl" }

I'll be renovating my house (gut all existing bathrooms and kitchen, extend house to make room for an extra bathroom). It's currently my primary residence but I likely have to move in early 2022 to another city where I also own a house and then I plan to rent my current residence via Airbnb. What should I consider from a tax perspective? For example, if my current residence becomes an investment property before or when I renovate, does the renovation count as a tax deductible expense?

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Why are you renovating if you’re going to use it as an Airbnb? Are you in a highly desirable area? If so, unless your house is disgusting, I’d leave it as is. From a tax perspective, it is probably only deductible if you start renovations after making it an investment property.

That makes sense

Renovations are capital expenses. Deduct with 27.5 years same you would for the rest of your house. Only applies to when it’s actually an investment property - just figured into your depreciation cost basis

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