DavidD66
Expert Alumni

Investors & landlords

You are correct that you would only take 11 months of expenses (including depreciation) on Schedule E as Rental Expenses.  Property tax not expensed on Schedule E, would increase your basis, while repairs to get ready sell would be sales expenses, and reduce your proceeds.  They both have the same effect - a smaller gain.  The period is short, so the amounts will be small, so I would keep it simple.

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