I just purchased an investment property. Before I can rent it out, I need to do maintenance and repairs including; Paint, flooring, new appliances and other misc. I am not sure I will be finished by the end of the year. Question: Can I deduct these expenses for this year even though I may not have rental income?

You can deduct maintenance costs associated with rental property in the year you incur them. However, be careful that you understand the difference between maintenance expenses and capital improvements. Some of the expenses you listed are actually capital improvements, and so can't be fully deducted in the year you spend the money, but rather must be depreciated over several years. Thus while items like painting are considered maintenance and so can be deducted right away, others such as new appliances and flooring are capital improvements. Anything which increases the value of the property and/or extends its life is capital improvement, and so must be depreciated over several years. You can begin to depreciate property only after you place it in service for the production of income. Property is considered placed in service in a rental activity when it is ready and available for a specific use in that activity - so once it's ready to move in and you are advertising for a renter then it is in service and you can start depreciating the capital items.

See IRS pub 527: Publication 527 (2007), Residential Rental Property (http://www.irs.gov/publications/p527/index.html)

Ebaines rasied several EXCELLENT points, but I will go a step further: You NEED to get professional tax help!

The type of return involved with rental property has a LOT of complicated issues involved with it. The average layman simply does not have the expertise needed to prepare such a return.

The fee you pay the tax pro will be more than worth it for NOT having to face an IRS audtor in future years because the return was botched!