Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
manbeing
Level 4

Rental property- fair rental days calculation

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

1 Best answer

Accepted Solutions
Coleen3
Intuit Alumni

Rental property- fair rental days calculation

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

Vacant while listed for saleIf 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.

View solution in original post

8 Replies
Coleen3
Intuit Alumni

Rental property- fair rental days calculation

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

Vacant while listed for saleIf 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
Level 4

Rental property- fair rental days calculation

I don't understand this: "If you sell property you held for rental purposes". What is 'sell property for rental purpose"?
Coleen3
Intuit Alumni

Rental property- fair rental days calculation

It means that you had it available to be rented; that you didn't deliberately leave it vacant prior to sale.
manbeing
Level 4

Rental property- fair rental days calculation

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
Intuit Alumni

Rental property- fair rental days calculation

You only need proof if you are audited. Newspaper ads or listing with rental agents are types of proof.
manbeing
Level 4

Rental property- fair rental days calculation

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
Intuit Alumni

Rental property- fair rental days calculation

Damages by tenants would be an expense. The other can be added to the basis of the house which will reduce gain.
1cooldudeinAZ
Level 2

Rental property- fair rental days calculation

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.

Dynamic AdsDynamic Ads
Privacy Settings
v