Can I deduct repairs (carpet, paint, etc) on a rental property that I sold after the tenants moved out?

Should the costs be under rental repairs because they were made necessary by tenants or as part of the selling costs?


AnnetteB
Intuit Alumni

Investors & landlords

If you continued to advertise and have the house available for rent after the tenants moved out and while the property was for sale, then the expenses would be considered rental expenses and can be deducted on Schedule E.

If the property was not made available for rent during that time, then the repair expenses are considered personal expenses and would not be deducted.  Costs of improvements (such as the carpet) can be added to the basis of the property.