Deductions For Property Not Rented
We normally rent our properties out for over a year and I know we can deduct the taxes, utilities, insurance etc when renting. The house we just sold took over a year to fix up so we sold it without renting. Can we still take all the deductions we usually take for our rental property? Thanks.
When did you sell it?
Did you just sell it? Or was it last year?
We bought it at the end of 2008 and just sold it in 2011. Just getting ready to get tax stuff together.
I would think you would be able to write the expenses off, and then the capital gains would off-set it.
Will you be getting your taxes prepared by an accountant? I usually let them handle our stuff.
Until the property is put in service, anything you spend to make it ready for rental use or ready for sale, is an adjustment to basis.
Capital improvements are never deductible. They are added to the cost basis.
You may be able to deduct mortgage interest as investment interest on Schedule A, but that has limitations.
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On 2012-04-02 04:54, NewKidInTown3 wrote:
Until the property is put in service, anything you spend to make it ready for rental use or ready for sale, is an adjustment to basis.
Capital improvements are never deductible. They are added to the cost basis.
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Just for clarification, capital improvements are deductible over the depreciable life of the asset once the property is placed in service. Depreciation is recaptured when the rental unit is sold (currently 25% Federal).