Can I deduct mortgage interest, insurance, property taxes and utilities paid if my rental was vacant 7 of 12 months for repairs/improvements for sale of home?

[Coleen3 · Accepted solution]

Unfortunately, no. It must have been available to rent.

Vacant rental property. If you hold property for rental purposes, you may be able to deduct your ordinary and necessary expenses (including depreciation) for managing, conserving, or maintaining the property while the property is vacant. However, you cannot deduct any loss of rental income for the period the property is vacant.

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 is not held out and available for rent while listed for sale, the expenses are not deductible rental expenses.

[er1353]

So how would one deduct ordinary and necessary expenses for managing/conserving/maintaining the property while the property is vacant? What form does one put this on? I imagine this would be things like general maintenance and repairs, cost of keeping utilities on etc?

[Coleen3]

If your property was not held for rental purposes and available for rent, you can't deduct any expenses.