We have a rental property which was rented approximately half of 2016. In May there was a small kitchen fire and we received an insurance settlement. The lease was through the end of June but the tenants chose to move out mid-June. I did not advertise for rent, opting to use the insurance money to fix up the rental and sell it. It did not close until 1/27/17. So my questions are: 1) Is it considered a rental all of 2016 even though it wasn't advertised? 2) If so, do I deduct repairs, utility payments, mileage, etc. as expenses? How do I determine a repair vs. an improvement? 3) Is the insurance settlement considered rental income, or personal income, or neither? 4) When I use a credit card to pay for repairs and improvements, is the CC transaction date the correct date to deduct them? Thank you
