Hello Experts,
I have (had) a rental property (last tenants lease ended 3/31/24) that I decided to sell. I did some work on the house to prep it for sale and listed it for sale on April 18, 2024. I received two offers but both fell through for various reasons. After the second sale fell through I decided to move back in (September 5, 2024) and make it my primary residence again. Here are my questions:
1. When does the rental depreciation stop, 4/1/24 (after lease ended) or 4/18/24 when it was listed for sale or 9/5/24 when I moved back in (Pub 527 Idle Property and Retired from Service)
2. Can I deduct any expenses related to the sale prep since it never sold, would it still have been considered a rental during that time (Pub 527 Vacant while listed for sale)?
3. I received due diligence money with each sale offer which the prospective buyers had to forfeit. Is that money considered ordinary income or capital gains?
Thank you!
