I sold two rental properties in 2017. At the closings my expenses included property taxes for 2016 and part of 2017. Are these taxes a deduction or a sales expense?

[FastTrack19]

The county taxes paid are part of my expenses in the master statement from the title and trust company. I'm not sure if I'm supposed to enter these taxes into the "real estate taxes" portion or add them into my total sale expenses. I have the same question for HOA fees that were paid at the closing. Thanks!

[Coleen3 · Accepted solution]

If you were still renting the property in 2017, they are a rental expense. If not, they are a sales expense.

[FastTrack19]

I rented one property through April and the other through May of 2017. I sold/closed on the properties in mid-2017. In that case are they still considered rental expenses?

[Coleen3]

Yes.