We had a tenant leave our rental property in May of this year. The tenant trashed the property and we had to spend about $8,000 on repairs. Including new paint ($4,400) and Carpet ($2,200). These costs were incurred in preparation for us attempting to sell the home. The roof also sustained damage that we filed an insurance claim for, so we have a $1,000 deductible on that.
We attempted to sell the rental home and were unable to get a satisfactory price and cancelled the sale. We currently have the home empty. We are thinking about using it as a 2nd home for the next couple of years as it is close to family we would like to visit making our first visit to in Q4. After a couple of years we will either rent it again or sell it. We plan on paying off the mortgage around Q4 as well so we will no longer have interest expense.
I was wondering how we should handle the expenses we incurred given that 1) we will have a huge loss this year. 2) have personal days of use, and 3) do not foresee having it as a rental in 2021.
For reference, we do not own our primary residence.
Also, for purposes of a home office, if we intent to setup a home office upon visiting the property for first time (again, 2nd home). Not sure if this counts for our sole proprietor business.
