AmyC
Expert Alumni

State tax filing

1. If you are no longer holding the property out for rent, the rental is terminated and your expenses will be either:

  • added to the basis - capital improvement like a new bathroom floor or
  • selling expense - example: HVAC repair a leak to get the house sold

2. If you were holding it as for rental property, then you can use Sch E for entering expenses. I doubt that you were but maybe you had it up for rent or sale. Items should only be entered on the Sch E depreciation section if the Sch E was still actively being used or advertised for rent.

 

3. Yes, skip to the sale, if the house was vacant and for sale only.

 

Reference: About Form 4797, Sales of Business Property

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