Sold former home in 2019. Rented it for several years, but it was not available for 14 months prior to sale. Do I report this as sale of rental property or second home?

[ColeenD3]

You would enter it in Sales of Business Property. Since you did not rent it in 2019, you can't enter it in the rental section.

1. Once you are in your tax return, click on the “Business" tab ("Federal Taxes" tab in Premier)
2. Next click on “Business Income and Expense" ("Wages and Income" tab in Premier)
3. Next click on “I’ll choose what I work on” (Jump to full list)
4. Scroll down the screen until to come to the section “Less Common Business Situations” ("Business Items" in Premier)
5. Choose “Sale of Business Property” and select “start’
6. Select "Sale of business or rental property that you haven't already reported"
7. Sale of Business or Rental Property - yes
8. Enter all the information about your Rental Property Sale here

[Barb54]

Would the amount reported for depreciation be only for the years it was rented?  The amount depreciated on Schedule E for each year's tax return?  Thank you!

[RobertG]

Yes, the depreciation would only be for the years it was in service as a rental property.

The amount depreciated on Schedule E for each year's tax return.

[Barb54]

Where can I find what expenses incurred for sale would be allowable to add to cost basis (IRS publication)?  Since I cannot deduct rental maintenance expenses on Schedule E for 2019, can the expenses I had for maintaining the home in 2019 (utilities, landscaping, (mowing), property taxes, etc. be added to cost basis?  How about repairs and improvements made to put house on the market?  Many thanks!

[ColeenD3]

The moment your home ceases to be available for rent, your expenses cease to be deductible. Improvements can be added to the basis.  You can deduct mortgage interest and property taxes, as this is now your second personal home.

The rest are personal expenses and are not deductible.

From IRS Pub 527: 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.