Just to clarify some things. It's particularly noteworthy that you were renting to family. So this very well may matter, depending on if you were charging her FMRV or renting to her below FMRV.
The time period your daughter stayed there counted as personal use
Assuming she was paying FMRV, only the period of time for which she was living there and did not pay rent, is personal use days.
Do I subtract the flooring cost from the basis
No. The flooring and any other property improvements are added in the assets/depreciation section, classified as residential rental real estate and set up for depreciation for the next 27.5 years. (Even though you sold the property.) You'll enter what you paid in the COST box, and enter zero in the COST OF LAND box. The in service date will be the date you closed on the sale. (This keeps depreciation at zero, or extremely low in an amount that won't really make any difference.)
and list the other expenses as misc?
If you did not rent or attempt to rent the property after your daughter moved out and before the closing date of the sale, then you need to convert the property to personal use effective one day after your daughter moved out, or one day after the rent (that she didn't pay) was due. I would suggest you convert one day after the March rent was due, so that you don't have to deal with reporting any personal use days.
Expenses incurred after converting to personal use are not deductible on the SCH E. Period.
Of course, property improvements still add to the cost basis (not subtract from it) so those get entered in the assets/depreciation section as suggested above.
So I can't add the painting and various repair expenses to the basis since they are not capital improvements?
No, you can't. But was painting "a part of" a property improvement?
Painting a room does not qualify as a property improvement. While the paint does become “a material part of” the property, from the perspective of a property appraiser, it doesn’t add “real value” to the property.
However, when you do something like convert the garage into a 3rd bedroom for example, making a 2 bedroom house into a 3 bedroom house adds “real value”. Of course, when you convert the garage to a bedroom, you’re going to paint it. But you will include the cost of painting as a part of the property improvement – not an expense separate from it.
Any utility costs incurred after the last renter moved out are just not deductible at all on the SCH E. (Assuming you do as recommended and convert the property to personal use since you did not rent or attempt to rent the property after the daughter moved out. )
