I had to do a significant amount of work including items normally classified as expense such as painting to get a rental propery ready to sell. This was accomplished in 2020 and the property was sold in 2021. No tennants were in the property after these improvements. My income is greater than 150k so no passive expenses are deductable. What do I do with all of these expenses that I incurred in 2020? How can they benefit me against the sale.
You would add them to the basis of the property. Any repairs done in conjunction with improvements are also counted as the improvement.
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