9 years ago I purchased a home for my son and granddaughter to use rent free. The amount of forgiven rent was well below gift tax exclusion.
I know it's not what you want to hear. Also, I'm not lecturing here. Just including details which I'm sure you already know, so that others reading this thread in this public forum may find it helpful.
There is no "forgiven rent", as for you this was just a 2nd home that you allowed your son and grand daughter to live in. Also, there's no business use of this property what-so-ever that I can see, since you clearly state, "9 years ago I purchased a home for my son and granddaughter to use rent free."
Therefore upon selling, your cost basis is what you paid for it originally, plus the cost of any property improvements you may have paid for during the time you owned it. That's pretty much it. You also do not qualify for any capital gains tax exclusion on the sale if sold at a gain, since the property was never your primary residence. Additionally, if sold at a loss, due to tax law changes that when into effect in 2018, losses on the sale of personal property are not deductible unfortunately.
Am I allowed to include 9 years of expenses, such as property taxes, insurance, association dues etc?
Nope. Property taxes are claimed in the tax year they are paid. For you this would have been a SCH A itemized deduction and most likely would not have made any difference in your tax liability anyway. Remember, your SCH A itemized deductions must exceed your standard deduction before they are of any help in reducing your tax liability.
The property insurance and association dues are not deductible for personal use property and never have been.
My son paid for things like, upkeep, utilities and renters insurance.
Unfortunately, none of that is deductible or reportable on any tax return. It's considered the routine cost of maintaining one's residence. (Smart on his part too, to get the renter's insurance!)
