Expensees incurred after the last renter moved out, or when you decided to not hold the property out for rent any longer, are not deductible on SCH E.
For example, a renter moves out and you stop advertising the property for rent, and instead list it for sale. Expenses incurred after the last renter moved out, or after you stopped holding it for rent, are not deductible on SCH E. So mortage interest, property taxes and property insurance would be pro-rated for the SCH E for the period of time the property was a rental.
Whereas if you held the property out for "sale or lease", and you were offered a purchase price instead of a rental inquiry and accepted the offer and elected to sell, then all expenses incurred would be a rental expense up to the date of the closing on the sale.
