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Ask Millionacres - What Expenses Can I Deduct From My Vacation Rental?


[Updated: May 20, 2021 ] Apr 15, 2020 by Matt Frankel, CFP

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Q: I am a widowed senior who purchased a second home for rental purposes in 2019. I am preparing my taxes for 2019 and was told that "the nature of the costs in 2019 are going to be added into your cost basis and taken into consideration when you sell it thus reducing the profit and taxes you must pay when you sell. As for now, there seems to be no income to subtract these costs against." I don't understand why I can't deduct closing costs and remodel costs when filing taxes this year. -- Nancy

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