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cboharvey
New Member

I owned a rental property in 2022 but didn't sell it until 2023 because we were fixing it up. Is it still considered a rental for expense purposes?

Can I deduct expenses for a rental property that is no longer being rented?
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1 Reply
RobertB4444
Employee Tax Expert

I owned a rental property in 2022 but didn't sell it until 2023 because we were fixing it up. Is it still considered a rental for expense purposes?

No.  Once the rental property is no longer 'available for rent' then you can't deduct expenses for it.  The costs of preparing it for sale are added to the basis of the property to reduce the gain on the sale when it happens.  You'll total up these costs and - along with any costs from the closing statement - enter them into TurboTax as 'expenses of the sale'.

 

@cboharvey 

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