topic If I listed an empty home for sale for 5 months,listed it for rent for 120 days, rented it 62 days, had no personal day use, can I deduct all the expenses for the year? in Investors & landlords

If I listed an empty home for sale for 5 months,listed it for rent for 120 days, rented it 62 days, had no personal day use, can I deduct all the expenses for the year?

doug12 — Thu, 06 Jun 2019 05:27:05 GMT

The home was rented for about 13 months (all of the previous year). Then at the end of January of the tenants moved out. I listed it for rent until May, and then with it empty I listed it for sale for 5 months. It did not sell it and new tenants moved in December 1st. I am not sure which expenses I can claim on Schedule E.

As long as you did not convert it to personal use during...

ToddL — Thu, 06 Jun 2019 05:27:06 GMT

As long as you did not convert it to personal use during 2015, it remained a rental property while it was rented, while it was listed for rent but vacant, and while it was listed for sale.

You can deduct all normal rental costs for the entire year, just as if it had been occupied by tenants.

https://ttlc.intuit.com/replies/4209856

Excellent answer.

doug12 — Thu, 06 Jun 2019 05:27:10 GMT

Excellent answer.

Thank you! My pleasure.

ToddL — Thu, 06 Jun 2019 05:27:11 GMT

Thank you! My pleasure.

If this property continues to sit empty until you sell it...

Carl — Thu, 06 Jun 2019 05:27:14 GMT

If this property continues to sit empty until you sell it in 2016 (assuming you do sell it, of course) then when you work this through the 2016 TT program you're going to have conflict. I would suggest you bookmark this thread for next year so you can "continue" where you left off at that time. Having the above history will save time in helping you "get it right" next year. 🙂

" new tenants moved in December 1st. "

view2 — Thu, 06 Jun 2019 05:27:16 GMT

" new tenants moved in December 1st. "

Got it. Thanks. So he'll be fine.

Carl — Thu, 06 Jun 2019 05:27:17 GMT

Got it. Thanks. So he'll be fine.

I adjusted all of my expenses for only the time period (1...

doug12 — Thu, 06 Jun 2019 05:27:19 GMT

I adjusted all of my expenses for only the time period (183 days), which I was trying to rent it or had it rented. TT is giving me a full year depreciation for the home, stove, carpet, etc.? Should I change my business % use to effect depreciation deduction? Do a get a full year of depreciation?

That's correct. The property was classified as rental rea...

Carl — Thu, 06 Jun 2019 05:27:22 GMT

That's correct. The property was classified as rental real estate for the entire year, you did not live in it for one single day of that year, so your depreciation is for the entire year. Days sat empty between renters doesn't matter since you were actively trying to sell/rent it.

I will leave it 100% business use. Thanks Carl!

doug12 — Thu, 06 Jun 2019 05:27:24 GMT

I will leave it 100% business use. Thanks Carl!