@Sdong258 you are an "add on" in this thread. In the future, when you have a question please start your own thread. Your situation is ***NOT*** the same (or even close to the same) as the original poster in this thread.
I, as the owner, move back to live in this property
Why did you move back in to live in this property? (Rhetorical question).
If you moved back into the property to live in it as your primary residence, 2nd home, vacation home or *ANY* other type of "Personal pleasure" use, then you have to convert this property back to personal use. The date of conversion has to be one day "after" the last renter moved out.
I replaced the damaged carpet caused by the tenant's dog who moved out,
Nothing done after the last tenant moved out is deductible if you were required to convert the property back to personal use for the reasons stated above. Any claims to rental expenses ended the day after the last renter moved out, since that's the day you converted the property to personal use. So any expenses incurred after the last renter moved out are *not* rental expenses. They are personal expenses and are just flat out not deductible.
@ldavis49
I take specific note that you are referring to tax years 2016 and 2017 (twenty sixteen and twenty seventeen). So I am assuming that you are just now getting around to doing your taxes for those years.
This is tricky, because the property was vacant from the time the last tenant moved out, until you sold the property. What makes this tricky is not the fact that it was vacant, but the fact that your period of vacancy from the time the last renter moved out until you closed on the sale of the property, crosses tax years.
What exactly is personal use of the property?
If you lived in the property as your primary residence, 2nd home, vacation home, or *ANY* other type of "PERSONAL PLEASURE" use for even one single day after the last renter moved out, then that's personal use. Do not confuse yourself here. If you lived in the property for say a week for the *PRIMARY* *PURPOSE* of cleaning it up and turning the property around for the next renter, or fixing it up for sale, that is *NOT* personal use. Not even close.
Now, for 2016 the property will remain classified as a rental for the entire year. So when asked by the program, you *WILL* answer YES to the quesion, "was this property rented the whole year?". Again, answer YES and be done with it, assuming you have no personal use days of the property in 2016.
As for how you'll deal with this on your 2017 tax return, one thing at a time here. Get your 2016 tax return done, completed, printed, signed and "ready to mail" before you even bother with the 2017 taxes. Otherwise, you'll just add to your confusion and/or misunderstanding without even realizing you are confused.
