Second Home purchase and sold in same year

[Cmb7]

I own my home and some rental properties.  In 2024 I purchased a second home and then sold it to my daughter for the same price I purchased it.   I did incur cost to do this.  Can/should I include this home purchase on my schedule E as a rental home purchase then sold?  Can I include the expense as an income reduction to my rents?  

[rjs]

How is it a rental home? Did you ever rent it to anyone or advertise it as available to rent? The fact that you own some rental properties does not mean that any home you purchase is a rental. The fact that you call it a second home also indicates that it was never a rental or intended as a rental.

[TomD8]

And since it was never a rental property you cannot deduct those expenses on Schedule E.  Your only allowable deductions would be mortgage interest and property tax, each of which you would have to take on Schedule A.

[Cmb7]

My daughter and husband were renting one of my properties and yes paid rent to me that I claimed as income.   I purchased a house with cash and they moved into the house. And paid me rent while getting approved for a mortgage.  Once approved they purchased it from me for the price I paid for it.  I incur cost when I closed on the property.  Can I claim the rent income and expenses under schedule E even if I never intend to keep the property as an income property?