ThomasS
New Member

Investors & landlords

Grey area - you say the house was "put up for sale and/or rent (which ever came first)". Was the Primary intent to rent or to sell it? Matter of judgment - if primary intent was sale, then technically your conclusion is correct - "cannot deduct any of the expenses I normally deduct while it's rented".

You could also take the position there was no Primary intent either way, and as such, since it was available for rent, I would deduct all of the expenses for the whole year as being attributable to rental activity.

I hope this helps you make a decision.

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