When did you first make the rental available?
When did you remove it from being available for rent (such as selling it)?
I'm trying to figure out the $10,000 of improvements. Are you saying the Fair Market Value was $45,000, then you made $10,000 of improvements AFTER it was available for rent?
It could be a gray area, but if he owned half of the property, in my opinion he needs to report half of the sale.
