We bought a vacation house in 2020, which we plan on renting out in 2021 after some renovations. I think I understand the tax implications for the renovations.
Furniture under $2500 is considered an expense and can be deducted from the rental income. The problem is that we plan on buying furniture in 2020 when we have no rental income.
Is there any way to deduct purchases in 2020 against 2021 rental income? Since this is for short-term weekly rentals we need to purchase everything for the house (including beds, tables, plates, glasses, towels, linens, etc..) Does that make a difference to the answer?