topic Do I put expenses from fixing up rental home,vacant 6 of 7 months on sch E as rental expense or cost of sale? in Investors & landlords

Do I put expenses from fixing up rental home,vacant 6 of 7 months on sch E as rental expense or cost of sale?

gregsalyer — Thu, 06 Jun 2019 05:19:58 GMT

I rented out rental house in January and then spent 6 months fixing up and selling property while vacant. Do I put the expenses for those 6 months on Schedule E as rental loss or as part of cost of sale?

You can claim these as either rental repair & maintenance...

ToddL — Thu, 06 Jun 2019 05:19:59 GMT

You can claim these as either rental repair & maintenance costs, or as selling costs.

If the damages were the result of the rental activity, the costs to repair them are deductible rental expenses.

If you made rep airs in order to sell the rental property, they can be deducted as selling costs.

Since they are deductible in either case, it is up to you where they belong.

Re: You can claim these as either rental repair & maintenance...

Lakehousebroker — Tue, 14 Jul 2020 19:50:17 GMT

Where do I deduct the cost of repair/ remodel as a cost to sell?

I had the rental for quite a while and had to do a total remodel due to wear and tear. Now I'm confused as to were I list the sale. I'm an active broker so it's not passive income.

It's been listed as a rental until last year.

Should I leave it under my business tab and list the expenses as repairs?

Thanks