Q: Now that we purchased a Vacation property vacant how would I track my expenses when I rehab or the property is vacant?
A: There are two things to consider when your Vacation property is vacant, is the property under construction or is it ready to rent?
Is the Rent Vacation Property? That means you are still fixing the property so it can be livable.
- If the answer is NO then you capitalize all the expenses.
- If the answer is YES then you capitalize all the major expenses that increase the value of your property and expense the repairs.
Good Luck on your property.