Tax Deductible Items on OO rehab

We are rehabing a house that we will be moving into, what items on the rehab can we deduct on taxes, or can we only use those things when we go to sell to offset the gain?

Generally you are not allowed to deduct rehab expenses if it is going to be your principal residence. You are correct by saying that you’ll offset those costs by the appreciation of the property which you’ll hopefully recover when you sell. Check out IRS Publication 527 for real estate tax rules. Somewhat of a dry reading, but GREAT info!

You can 'most always take Interest and Taxes…the rest defers and is added to you Cost Basis (now an Adjusted Cost Basis) for whne you sell.