Submitted By: Gamble
Answered: July 6, 2015 10:04 am

I made repairs to a home that I tried to rent out but couldn’t get a tenant (I haven’t lived in this home). Can I deduct the repairs?

The cost of repairs and maintenance for a rental property is deductible as long as the property has been held for rental at a fair rental price. However, because there was no rent, the net loss (expenses in excess of income) is subject to the passive activity loss rules. Unless you qualify as a real estate professional, losses generally are limited to passive activity income for the year; excess losses carryover. However, you may qualify for the $25,000 loss deduction limit for property in which you actively participate.

Tax Glossary

Home equity debt

Debt secured by a principal residence or second home to the extent of the excess of fair market value over acquisition debt. An interest deduction is generally allowed for home equity debt up to $100,000 ($50,000 if married filing separately).

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