I sold a rental property in 2017 & paid a $10,000 seller credit at closing. Is this 10k tax deductible? If so, in which section of rental expenses do I enter this amount?

[seeker1308]

I did not receive a 1099-S for this sale

[MichaelL1]

Not all are required to be out yet, so you still may.  It is still the right way to go, report the correct sales price, and then take the selling expenses.  A 1099S may come late and you still want the return to match and avoid any flags with the matching program.

[seeker1308]

So where does the 10k get entered within Rental Expenses? It doesn't seem to fit any of the categories available.

[MichaelL1]

no when the sale is entered, it will ask for sales expenses, so enter it there.  If it does not ask, then reduce the sales price and document your tax file as to how amount was arrived at.

[seeker1308]

Thanks, I see what you mean now. The Depreciation wizard wasn't taking me to the sale screen at first. Now to try to calculate this "business portion(s)" of this sale 😕

[MichaelL1]

If you paid a seller credit of $10K it is just like selling the property for $10K less, so your selling expenses need to include this $10K.  This way the 1099S will match the sales price.

It does not go as normal rental expense, as it is not related to renting property but the sale of the property.