Rental expenses for sold property

[ShosMeister]

I tried searching but couldn't quite ask it the right way - if my subject sucks, please tell me and I'll change it!

I sold my rental property - just last month. BUT, I started working on selling it last November. A lot of the expenses for repairs prior to sale were last year but some are this year. Also, the rental is in another state.

So the question is: Should I (and can I) claim all of the expenses for repairs/etc, on my 2021 tax forms? The reason I'm asking is because, as I said, this is in a different state and if I wait until next year, I won't be filing taxes for that state - I don't think unless I have to file for the sale of the house in which case ignore this.

Hope I'm not being too confusing and thanks!

[Carl]

So the question is: Should I (and can I) claim all of the expenses for repairs/etc, on my 2021 tax forms?

Rental expenses are claimed in the tax year they are incurred. Period. End of story.

If you were renting or attempting to rent the property prior to the sale, then you have rental expenses. Once you stop renting or attempting to rent, you no longer have rental expenses.

DO NOT confuse this with property improvements, as that is it's own completely separate and unrelated beast.

if I wait until next year, I won't be filing taxes for that state

Yes you will, as any gain realized on the sale is taxable by the state.

[ShosMeister]

Thanks. I'll keep them separated then and worry about the additional repairs made this year on 2022 taxes.