Dates placed in service:
This concept is important for those looking to purchase or renovate a property - Fair Rental Days are days during which your property is ready and available for rent. Most people prefer to get a property ready and rented as soon as possible, as there are significant tax implications based on the unit being available and ready for rent.
Maintenance and repair costs are a deduction on taxes when the unit is being rented, or during the unit's “fair rental days”, but not when the unit is unavailable and going through renovation.
If a property is not ready and available to rent, then any expenses incurred to do a renovation or repair have to be capitalized and depreciated just like the normal Capital Expenditures - even if these are standard repair and maintenance expenses.
Disclaimer: This content has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for accounting or tax advice.