We have a condo that was purchased in 2010 for $113,000. It was rented in 2010 and 2011 and then converted to personal use in 2012. In May 2015 it was converted back to a rental property until August 2019 at which point we decided to sell it. Once the tenant moved out we did some work in it to get it ready to sell. It will be sold in February 2020 and the sale will be on the 2020 tax return.
But for 2019 my questions are:
Thanks for any advice.
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For tax purposes it stopped being a rental in August 2019. The expenses after that aren't personal, but they aren't rental expenses.
The $3,000 painting cost should be claimed as a fixing up expense or an expense of sale in 2020.
Here's what the IRS says:
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 isn’t held out and available for rent while listed for sale, the expenses aren’t deductible rental expenses.
Publication 527, Residential Rental Property
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