Advertiser Disclosure

advertising disclaimer
Skip to main content
ask millionacres

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

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

Get our 43-Page Guide to Real Estate Investing Today!

Real estate has long been the go-to investment for those looking to build long-term wealth for generations. Let us help you navigate this asset class by signing up for our comprehensive real estate investing guide.

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

Got $1,000? The 10 Top Investments We’d Make Right Now

Our team of analysts agrees. These 10 real estate plays are the best ways to invest in real estate right now. By signing up to be a member of Real Estate Winners, you’ll get access to our 10 best ideas and new investment ideas every month. Find out how you can get started with Real Estate Winners by clicking here.