There have been some changes/improvements to this section. Indicating "0" rental days, will force the software to mark that it's no longer a rental (forces passive losses to be released), which is correct according to the IRS.
If the property isn't being used for personal use while you hold it to sell, then you should say it's still a rental for every day this year. You don't have to report any income or expenses, but this will achieve what you've experienced in the past, of carrying forward your losses.
The IRS specifically allows this type of reporting. From Pub 527 for rental properties:
If you hold property for rental purposes, you may be able to deduct your ordinary and necessary expenses (including depreciation) for managing, conserving, or maintaining the property while the property is vacant. However, you can’t deduct any loss of rental income for the period the property is vacant.
Vacant while listed for sale.
If you sell property you held for rental purposes, you can deduct the ordinary and necessary expenses for managing, conserving, or maintaining the property until it is sold. If the property isn’t held out and available for rent while listed for sale, the expenses aren’t deductible rental expenses.
See this here: https://www.irs.gov/publications/p527#en_US_2017_publink1000219000
Review your rental property entries under:
- Head into Rental and Royalty Income and answer the basic rental questions >>>
- select to Edit the applicable property >>>
- Select Update next to Property Profile >>>
