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Investors & landlords
If you intended to retain the property as a rental last year, you can claim any expenses you incurred to maintain the property. This includes depreciation, property taxes, insurance, and simple repairs. Even though you didn't have a tenant, the IRS considers this a "vacant" rental property, as long as you intended to use it as a rental when you found a tenant.
Per IRS Pub 527 - Vacant Property
Vacant rental property.
If you hold property for rental purposes, you may be able to deduct your ordinary and necessary expenses (including depreciation) for managing, conserving, or maintaining the property while the property is vacant. However, you can’t deduct any loss of rental income for the period the property is vacant.
In TurboTax, report as "rental days" the number of days the property was available to be rented, even if you had no tenant. If you report zero rental days, the program will delete all forms and schedules related to the property. Since you sold the property in January, you will need those records to report the sale properly next year.
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