Are rental and held-for-sale real property expenses deductible?

Forum|Forum|7 years ago
June 4, 2019
5 replies
35 views

I inherited a few foreign properties. One is formally rented (there is a pro-forma lease, but I do not receive income) to my mother. The others are held for sale after unsuccessful rental attempts. Are maintenance expenses, deductible?
If so, what kind of documentation I need to keep?

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Best answer by DavidD66

The expenses for the property with a tenant are deductible. If the other properties are not rented and you are not trying to rent them then the expenses related to those properties are not deductible. If they are in-service, even if they are not rented, then the expenses are deductible.

For documentation, you need receipts and proof of payment for any expense greater than $75. Credit card statements alone are not adequate documentation; however and credit card charge along with an invoice is adequate.

DavidD66Answer

Level 15

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gzipAuthor

Level 2

Could you please clarify what in-service means? Does it require the properties to be for rent and not for sale? For example, one of the properties is a plot of land that must be cleared yearly because of fire hazard regulation, which costs a few hundred dollars. Are those expenses deductible?