@ColeenD3 It has the same net outcome if you say yeah this was available for rent and no it was not. If you say yeah it was available for rent while selling then the expenses go on your schedule E. If not then they would go on your expenses to sell or part of the "cost to sell" either way you get them to lower your tax liability they do not just disappear. After all it is a business and those are liabilities not income so they go somewhere not up in smoke. You just have to be careful not to double dip like yeah these are rental expenses because while selling it was available for rent and these were also cost to sell items.
