I bought the property for primary residence in 2004 and lived there until 2007. I converted the property to rental in 2007 and it remained so until summer 2016. I was active duty military until 2014. We replaced an HVAC, upgraded the kitchen, and other repairs to prep for sale. We put the property up for sale in fall 2016, but didn't sell it until March 2017. We sold it at a simple loss, meaning we sold it for less than we paid for it before consideration of improvements or depreciation.
My question is whether the sale prep expenses incurred in 2016 can be reported as part of the sale on next year's taxes?
