turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

jonpagel
Returning Member

Rental expense versus selling expense

I sold a rental last year….renters moved out june 30, I fixed it up for a week, listed and closed august 30….I did a couple of repairs(no improvements) and had some landscaping cleanup done…..how do I treat those along with interest, insurance and tax for that 60 day period where nobody lived there and I didn’t have it advertised for sale?  All expenses for the rental or should I pro rate it and those 60 days of the above items would be selling expenses instead?  

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
MaryK4
Expert Alumni

Rental expense versus selling expense

You can deduct the expenses of a vacant rental property.   The two issues in your question are: Did you hold it as a rental property? and Is "advertised for sale" the same as held for sale?  If they do not qualify as expenses, you could not use them as selling expenses.

 

The IRS says:

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. (Vacant rental property.)

 

as opposed to 

 

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 isn’t held out and available for rent while listed for sale, the expenses aren’t deductible rental expenses. (Vacant while listed for sale.)

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies