No. Since you never actually used the property as a rental, since it was never rented at Fair Market Value, you would not be able to take any deductions from the income other than the capital improvements, purchase and selling fees/costs. Your travel to there to check up on the property and your friend would not be a deductible expense.
Since you did own the property for 10 years, this is a Capital Gains Sale, so you will be taxed at Capital Gains Rates instead of Ordinary Income Rates.
To enter your sale of your NY Property , you will take the following steps:
- Federal
- Income
- Show More next to Investment Income
- Start next to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)
- Select Other
- Continue through and select Other again for the type of investment
- Answer how you obtained your property
- You will then enter the selling price, dates and the cost basis of the items
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