Rental property was vacant from November 2016-July 2017, no attempt to find renters while remodeling. We sold the property in July, 2017. Where do I report the sale?

lisatdl — Mon, 03 Jun 2019 19:10:31 GMT

Since you didn't rent it during 2017, you would enter in...

Coleen3 — Mon, 03 Jun 2019 19:10:33 GMT

Since you didn't rent it during 2017, you would enter in Sales of Business Property. There will be an area to enter your depreciation for recapture.

If this house was a rental home or investment property -

It depends on your rental activity during the year:

Under the rental section - if rented during 2017
Under the sale of business property - if not rented during 2017

Additionally, when you sell a property that was used as a rental, you must pay recapture tax as well as regular state income tax on the depreciation you claimed. (Remember the IRS will assume that you claimed the correct amount of depreciation every year—this is true regardless of whether you actually claimed any depreciation on your tax return).

In order to calculate the capital gain or loss when you sell a residence that had been converted to rental property, you need to know three things:

Your adjusted tax basis in the property (both at the time of the conversion and the time of the sale)
The sale price
The fair market value of the property when it was converted to rental property

If the converted property is later sold at a gain, the basis for purposes of determining the capital gain is your adjusted tax basis in the property at the time of the sale. If the sale results in a loss, however, the basis used is the lower of the property's adjusted tax basis at the time of the conversion or the fair market value when the property was converted from personal use to rental property. This loss rule ensures that any deflation in value occurring while the property was held as a principal residence does not later become deductible upon your sale of the rental property; a loss on the sale of a principal residence is not deductible. As usual, you calculate your capital gain by subtracting your adjusted basis from the sale price of the property.

Thank you.

lisatdl — Mon, 03 Jun 2019 19:10:34 GMT

Thank you.

My pleasure

Coleen3 — Mon, 03 Jun 2019 19:10:35 GMT

My pleasure

topic Rental property was vacant from November 2016-July 2017, no attempt to find renters while remodeling. We sold the property in July, 2017. Where do I report the sale? in Deductions & credits

Rental property was vacant from November 2016-July 2017, no attempt to find renters while remodeling. We sold the property in July, 2017. Where do I report the sale?

Since you didn't rent it during 2017, you would enter in...

Thank you.

My pleasure