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Level 3
posted Mar 14, 2024 3:28:14 PM

How to account for insurance paid for rental property I sold in May 2023.

How to account for insurance paid for rental property I sold in May 2023?

The tenant lived there until March 30. I did some repairs and improvements then put house on the market for sale April 2023 and it closed escrow May 30, 2023. When I am accounting for expenses and depreciation on the rental, should it be for just the months the tenant lived in the property OR up until the time the house sold?

For example, a question asks for insurance and I paid $600 for the property insurance, do I divide 600/12= $50/mo. Then input $150 for insurance or is it up until the time the house sold, which would be $300? 

Same question for repairs: account for only what was spent while tenant lived there Or ALSO for repairs of damages to property after they left the their security deposit did not cover?

0 1 2095
1 Replies
Expert Alumni
Mar 14, 2024 3:32:29 PM

You can deduct expenses up until the rental was sold.