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Can I deduct travel expenses in preparation of selling a former rental property?

I know I can deduct travel expenses I incur while maintaining my rental property, but after my renters lease ended and they moved out, I had to travel back to the property to prepare (clean, repair, etc.) to put it up for sale. I also know I can deduct the expenses associated with fixing up the property prior to selling it, but can I also deduct my travel expenses to fix the property in preparation to sell it?

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3 Replies
AnnetteB
Intuit Alumni

Can I deduct travel expenses in preparation of selling a former rental property?

If the property is held available for rent during the period of time it is listed for sale, then your travel expenses would be deductible.  Otherwise, they are personal expenses and not deductible.

See the following excerpt from IRS Publication 527:

Vacant while listed for sale.

If you sell property you held for rental purposes, you can deduct the ordinary and necessary expenses for managing, conserving, or maintaining the property until it is sold. If the property isn’t held out and available for rent while listed for sale, the expenses aren’t deductible rental expenses


Can I deduct travel expenses in preparation of selling a former rental property?

Why couldn't expenses from travel undertaken specifically to sell the property be considered 'selling expenses'?  Per <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p523.pdf">https://www.irs.gov/pub/irs-pdf/p523.pdf</a>, Worksheet 2, Item 2e, selling expenses can include 'Any other fees or costs to sell your home'.  Assuming no explicit language exists stating travel expenses are disallowed under 'other fees or costs', it seems perfectly defensible to include them as selling expenses.

Can I deduct travel expenses in preparation of selling a former rental property?

Alternatively, it seems travel expenses could be deducted on Schedule A as investment expenses, assuming they exceed 2% of AGI, no?
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