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Investors & landlords
1.) For the rental days, use from the beginning of the year until the end of June. Zero personal days.
2.) The expenses paid after June should be added to the cost of the property (Increase in basis). The question of repair vs. improvement will be irrelevant at that point.
3.) The insurance settlement proceeds will reduce the basis of the property. You should fill out a casualty and theft Form 4684 for the fire. This deduction covers property that’s damaged as a result of a disaster, such as a storm, flood, fire, car accident, or similar event, and also covers stolen property. Property includes anything you own.
You can also claim this deduction for losses related to property used in a business such as a rental, and you might also be able to deduct appraisal fees related to casualties and thefts. We do all the calculations for you, so all you’ll need to do to is enter your loss information.
https://ttlc.intuit.com/questions/1901178-casualty-and-theft-losses4. The date that you pay for the services/supplies with a credit card or otherwise, is the date that you use, i.e. the date on the contractor/supplier receipt.
Basis adjustments
Depreciation, since it has to be recaptured, must be subtracted from the basis, giving you a bigger gain in the form of the depreciation you took.
If you are selling rental property, the calculations should be done for you by the program.
For a chart of additions and subtractions to basis, please see the chart provided by the link below.
https://www.irs.gov/publications/p17/ch13.html#en_US_2016_publink1000172171