Sold rental property - closed on 12/30/2016 (at a loss). Have 2016 utility expenses paid in 2017. Should I include them on my 2016 return or on my 2017 return?

SonomaRonTTC · ‎June 4, 2019

Also have an insurance refund received in 2017.

PatriciaV · ‎June 4, 2019

No. As a cash-basis taxpayer, you may report only those expenses that you have actually paid during the tax year (this includes payment by credit card).

Any expenses paid after December 31 fall into the next tax year. If you no longer own the Rental Property, the expenses are not deductible.

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PatriciaV · ‎June 4, 2019

No. As a cash-basis taxpayer, you may report only those expenses that you have actually paid during the tax year (this includes payment by credit card).

Any expenses paid after December 31 fall into the next tax year. If you no longer own the Rental Property, the expenses are not deductible.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

SonomaRonTTC · ‎June 4, 2019

Thanks Patricia!

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Sold rental property - closed on 12/30/2016 (at a loss). Have 2016 utility expenses paid in 2017. Should I include them on my 2016 return or on my 2017 return?