Rental expense

[Dude]

Property was between tenants for about 6 months. Owners had to fly in from out of state to make repairs and updates. Nothing I would classify as capitalization. Question, do these costs get expensed or are they added to basis since property technically was not available for rent until repairs were completed?

[Rapid Robert]

From Pub 527:

"Vacant rental property. If you hold property for rental purposes, you may be able to deduct your ordinary and necessary expenses (including depreciation) for managing, conserving, or maintaining the property while the property is vacant. However, you can’t deduct any loss of rental income for the period the property is vacant."

edit: I realize you stated that the property was not "available" for rental during the six months, but that may be a matter of facts and circumstances. Did the repairs involve pulling permits, or was it just something like painting and replacing plumbing fixtures and appliances? In the latter case, I'd probably take the position that these were deductible expenses. Also, I'd brush up my memory on the various safe harbors available under the Tangible Property Regs, so that maybe even if you treated the expenses as capital improvements, maybe they could be expensed anyway. I'd say there is a big difference between $5K total and $50K total with regard to how it could reasonably be reported.

[Dude]

Thanks. Nothing big just actually trying to make it nicer to get better tenants. Total costs around $6,000. I assume the flight from California to Ohio can be included.