I summoned @AmeliesUncle because he's more knowledgeable on the co-op stuff than I am, by far.
1. in the last 5 months of 2023 while the property was not offered as rental, I had carrying costs. Are they deductible, and if so, in which year?
If the property was not offered for rent (regardless of reason) between the time the last renter moved out, and the closing date of the sale, then you don't have "any" carrying costs unfortunately. The house has to be converted to personal use, effective one day after the last renter moved out.
2. in the last 5 months of 2023 while the property was not offered as rental (as is typical when trying to sell a rental property),
Actually, it's not as typical as one may think. In my limited experience and exposure to such situations, it's typical to advertise the property as "for sale or rent", and you just set the rent so high that you're more likely to get a buyer, than a renter. But then, if you do get a renter willing to pay the ridiculously high rent, why not take them? You can also do other things in an attempt to legally disqualify a renter, such as a credit check, criminal background check, and the such.
I had the place fixed up in preparation for sale (painting, minor repairs, cosmetic improvements, periodic visits, but no capital improvements). Are these deductible, and if so, in which year?
Expenses for things such s painting, minor repairs, cosmetic improvements and the such that were incurred after the last renter moved out are just flat out not deductible anywhere unfortunately. That's just the cost of maintaining personal use property. However, capital improvements are just added to the cost basis of the property and will of course, reduce your taxable gain on the sale.
Your answer would be much appreciated.
Things may be different for a co-op for all I know, and if your state taxes personal income and regulates co-ops. Like I said, I just don't have the knowledge necessary to know that anything stated above will apply to you, and would advise you take it with a grain of salt unless someone else chimes in who has more knowledge in this area, and agrees.
