I sold my rental property in Feb 2016, I hired a real estate lawyer and I had a real estate agent. Do I have to fill out a 1099 for the lawyer and the real estate agent?

[Carl]

No. Any fees you paid them are sales expenses, and are supposed to be reported on the HUD-1 statement you received at the closing. That's all you need for tax purposes, as those fees are part of your sales expenses.

[Blink15461]

One last thing, can I claim my sales expenses (i.e.: Real Estate Commissions, Transfer Tax, and Lawyer Fees) in my Rental Property Income section?

[Carl]

Not as rental expenses. They're claimed as sales expenses and you are specifically asked for that total when reporting the sale in the "Sale of Assets/Depreciation" section. You'll work all this through the Rentals  Royalty Income section. After reporting the sale in that section, all pertinent information including sales expenses, is automatically transferred to line 21 of the 4797 as a part of your cost basis.