My clients bought a house in Mexico in June 2017 and made several trips down to make improvements and furnish the property. They hired a property manager in October 2018 and had their first rental income in July 2019. Including the travel to purchase the property, they had numerous trips prior to the first rental income to purchase furnishings and monitor improvements. What travel costs are allowed as either capital improvement costs or deductible travel for periods prior to listing the property for rent? Thank you for any guidance you can provide.
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Travel associated with the property after it is listed for rent can be expensed, but cannot be capitalized before it is listed. https://www.irs.gov/publications/p52...link1000218997"Dude, you are correct" Rapid Robert -
While not answering your question, It is my understanding that Mexico requires a Mexican C Corp for rental property located in their Country. Is that your case as well?This post is for discussion purposes only and should be verified with other sources before actual use.
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