Our limited partnership owns a rental house that we are no longer renting because we are trying to sell it. Can we still deduct maintenance, taxes, and repairs?

[Kathy-Johnson]

We did not rent the house at anytime in 2017 because it is for sale. 

[DianeW · Accepted solution]

Beginning on the date the house was not available for rent, then the expenses from that point forward are added to the cost basis of the home and used to reduce gain on the future sale.   No additional entry in TurboTax is required for these expenses. They are simply added to the cost of your rental property (in your records).

[Kathy-Johnson]

Thank you for the information. For purposes of this rental property as it exists in Turbo Tax 2017 (carried forward from 2016 and before) , should I say that it was retired, or how do I take the rental property entry out of Turbo Tax so it won't ask me about expenses, etc? Thanks again!

[DianeW]

@kjohnson24 You will have to delete it or it will calculate depreciation even if you put no other expenses are entered, so be sure you have all the information you need for the future sale. Print a complete copy of the return and worksheets for last year, or you could bring it up when you need it in the 2016 software.

[Kathy-Johnson]

Thank you!

[Kathy-Johnson]

I'm sorry but I have more questions. I have a similar issue for our partnership that was growing hay and pecans, but now since the land is also for sale, and we have no income from the land, I assume I should not include expenses for maintenance? Do I need to change the business codes to somehow reflect that both properties are for sale? Thank you so much for your help!

[Kathy-Johnson]

How do I remove the farming operation from TurboTax so it will not ask me about income or expenses?

[DianeW]

@Kathy Johnson  For both you should indicate "sold and/or disposed of.  Then you will be asked the date they were removed from service. Make sure you keep all of your records for the future sale of both.

[Kathy-Johnson]

Thank you so much for your concise explanations!