Q: I purchased a new carpet, some appliances and a hot tub for the condo I bought to use as income property. Can I deduct these costs from my taxes? –Rex F.
A: The cost of getting your rental business up and running is called a startup expense. You can deduct up to $5,000 worth of startup expenses in the first year you are in business, and the remainder in equal amounts over the next 15 years. Put another way, if your business were up and running, and you incurred these costs and could deduct them as regular operating expenses, then you can deduct them when the business begins as startup expenses.