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TMMAK B$2874$

Test $-$ Intermediate Rental Real Estate $(2025)$

Rental Expenses

Question $5$ of $15.$

Nina purchased a rental house on January $2,2024,$ and immediately advertised it for rent. After several showings that did not result in a lease, and after taking feedback from prospective tenants into consideration, she decided to spend $$1,000$ on interior painting at the end of January to make the property more appealing. She also replaced a dripping kitchen faucet for $$150$ on February $9,2024.$ The property was successfully rented on March $1,2024.$

How should these expenses be reported on Nina's Schedule E for $2024?$

The total amount of $$1,150$ for the faucet replacement and painting should be included in the repairs expense on line $14$ of Nina's Schedule E$.$

$$ The total amount of $$1,150$ for the faucet replacement and painting must be capitalized and added to the basis of the

Only the $$150$ should be included in the amount for repairs on line $14$ of Nina's Schedule E$.$ The $$1,000$ for painting must be property. capitalized and added to the basis of the property.

None of these expenses are deductible since they were incurred before Nina rented the property.

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