We converted our primary house to a rental in July
2012. In June of 2016 when the current
tenants moved out we decided to put the
house up for sale, rent to own, or just rent.
On Dec 30th 2016 we finalized a contract to sell the
house. We closed on Feb 2, 2017. For 2016 taxes we treated the house as a
rental since we held it out for rent or sale until we had a firm contract on
it. We have $23,000 in passive
carryover losses through the end of 2016.
How should I treat the house in 2017.
Can I still count it as a rental in 2017? Or did it cease being a rental once we had a
firm contract? If I have to treat it as
an investment in 2017 how do I write off the $23k in past passive rental losses?
