topic Sold rental house took 5 months to close (under contact) – how are expense during that 5 months handled? in Investors & landlords

Sold rental house took 5 months to close (under contact) – how are expense during that 5 months handled?

dskolb — Tue, 04 Jun 2019 19:59:43 GMT

We sold our rental house this year. It was rented and offered for rent through July. For the next 5 months it was under contract finally closing in December. Since it was under contract it could not be offered for rent (though if the sale had not closed I would have put it back up for rent and sale). Where do I write off the expenses (utilities, taxes, insurance minor repairs) incurred during the 5 months?

Note: The house was under contract three times during the 5 month period, two contracts fell through, collected the earnest money and had new contracts within 2-3 days.

These are expenses of the sale and are reported in the Sa...

KittyM — Tue, 04 Jun 2019 19:59:45 GMT

These are expenses of the sale and are reported in the Sale of Property interview interview.

To report the sale in the proper location, in your Federal return, under Wages & Income,

choose Rentals, Royalties, and Farm and Show more.
Start or Revisit Rental Properties and Royalties (Sch E) and answer the preliminary questions.
When you get to Rental and Royalty Summary, Edit the property you sold.
Enter that you sold the property in the Property Profile, on the screen "Do Any of These Situations Apply to This Property?" and then move on to the sale of property/depreciation section.