Rental property- fair rental days calculation

[manbeing]

Tenant moved out on April 15, 2018, and I sold this rental property on Aug 15, 2018.

This rental property was vacant and not for personal use between April 16 and Aug 14.

The fair rental days should be between Jan 1 and April 15?  or between Jan 1 and Aug 15?

Thanks

[Coleen3 · Accepted solution]

Unless you had the property available to be rented until August, the date would be April.

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.

[manbeing]

I don't understand this: "If you sell property you held for rental purposes". What is 'sell property for rental purpose"?

[Coleen3]

It means that you had it available to be rented; that you didn't deliberately leave it vacant prior to sale.

[manbeing]

then how can I prove 'I had it available to be rented during sale period (April to Aug)'? I must advertise both rental information and sale information?

[Coleen3]

You only need proof if you are audited. Newspaper ads or listing with rental agents are types of proof.

[manbeing]

Thanks for for your clarifications. then how can I define two types of expense? One is the repair cost to fix the damages the tenant made after they moved out? Can I still treat them rental expense as these repairs were directly associated with rental activity? The other one is the repair cost to the items that buyer required after home inspection? Should I treat it as sell cost?
Thanks!

[Coleen3]

Damages by tenants would be an expense. The other can be added to the basis of the house which will reduce gain.

[1cooldudeinAZ]

Hi Colleen,

In 2020, I had a rental property under renovation due to tenant damage.

I received loss of rent check from insurance company for 1/2 of the time it took to fix it.

Once fixed, I listed the property for both rent and sale. Sale offer came first, and I sold the property.

Do I count the days covered by loss of rent payment from insurance company as rental days?

If I don't, TurboTax tells me to delete this unit as a rental altogether.

Since I incurred significant cost in time and expense from damage caused by rental activity (not covered by insurance), I don't see how it would be accurate to not consider this a rental unit.

Appreciate your thoughts.