Rental lease ended in June 2017. Home was sold in August 2017. Work had to be done to sell home.
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You have to differentiate between repairs and improvements.
The
first thing to note is that expenses for making a house ready to sell can be
listed as selling expenses when you are trying to determine if you have a
profit and, if you do, how much. Improvements are more or less permanent changes to the
house. These get added to your basis. New carpet would generally fall into
that category. But general repairs are more likely to fall
under "repairs and maintenance." If you get the house sold
within a reasonable period of time (what is considered reasonable will depend
on a variety of factors), although they end up in a different category than do
improvements. You put them under costs of sale. There is a special
section in TurboTax where you get asked question about - and enter answers to
those questions - on this topic.
Vacant while listed for sale.
If you sell property you held for rental purposes,
you can deduct the ordinary and necessary expenses for managing, conserving, or
maintaining the property until it is sold. If the property is not held out and
available for rent while listed for sale, the expenses are not deductible
rental expenses.
You have to differentiate between repairs and improvements.
The
first thing to note is that expenses for making a house ready to sell can be
listed as selling expenses when you are trying to determine if you have a
profit and, if you do, how much. Improvements are more or less permanent changes to the
house. These get added to your basis. New carpet would generally fall into
that category. But general repairs are more likely to fall
under "repairs and maintenance." If you get the house sold
within a reasonable period of time (what is considered reasonable will depend
on a variety of factors), although they end up in a different category than do
improvements. You put them under costs of sale. There is a special
section in TurboTax where you get asked question about - and enter answers to
those questions - on this topic.
Vacant while listed for sale.
If you sell property you held for rental purposes,
you can deduct the ordinary and necessary expenses for managing, conserving, or
maintaining the property until it is sold. If the property is not held out and
available for rent while listed for sale, the expenses are not deductible
rental expenses.
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