Sold a rental property 3/7/25. Tenant vacated 1/8/25. Insurance company allowed the tenant occupied policy to remain in effect until sale. Partial refund of $223 received 3/12/2025.
Policy terms ran 6/3/24 to 6/3/25. Since I fully deducted the annual premium of $927 on 2024 taxes
under the rental property, only 8 days of 2025 were deductible.
1. Do I report the $223 as an addition to income for 2025; if so, where would I report that?
2. Are the monthly premiums ($77 x 66 days) for Jan 1 - March 7, 2025 deductible as an expense of sale to be included in my adjusted basis?
Appreciate any advice! Thanks!
