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June 11, 2024
Question

Repairs and Maintenance for Sale of Rental Property

  • June 11, 2024
  • 1 reply
  • 0 views

Made repairs and maintenance in order to help sell the rental property. The property sold a couple months after - can I incorporate these as "selling expenses" ? The property was rented earlier in the year, but these expenses were made after to help facilitate the sale.

    1 reply

    Employee
    June 11, 2024

    Fix-up and maintenance expenses would not be deductible as selling expenses (or otherwise) unless the property was held for rental use when the expenses were incurred (i.e., if the property was taken out of service as a rental, then the expenses are not deductible).

    Mcb050032Author
    June 11, 2024

    Thanks for the reply - What is considered taken "out of service"? The last day rented or the closing date? It was always rented, but the few months before were vacant.

    Mcb050032Author
    June 11, 2024

    Not sure on this situation, any further thoughts on this? Thanks!