How to record: Investment property purchased late 2019, via 1031 exchange....rented in 2020

[pixelrogue1]

• Purchased an investment rental in November 2019.
• Purchase was 'ready for rent in 2019,' and hit the MLS via realtor in 2020 
• Purchase was made through a 1031 Exchange.

Given the purchase was ready for rent the day we closed, time of the year and such it was January before we pushed the listing to MLS via realtor. Would this qualify as 2019 rental? 
(we never lived in the unit, sat vacant until rented.)

If yes, then everything is pretty clean. If not, then it gets messy because the sale was through a 1031 Exchange...where both the sale of relinquished property and purchase of acquired property happened in 2019.

[Anonymous_ · Accepted solution]

Whether or not the property is actually considered a rental at the time would be if the property were ready and available for rent, not when the property is listed on the MLS.

[pixelrogue1]

100% ready and available. Thank you!

[DavidD66]

According to the IRS:

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 can’t deduct any loss of rental income for the period the property is vacant.