Sold rental prop. on 1/4/24. Had carrying and fixup costs dur.Aug-Dec of 2023. If I claim these expenses for 2023, how to answer TT qq about date of sale?

Forum|Forum|2 years ago
January 20, 2024
1 reply
0 views

P.S. the place was tenant-occupied Jan-July 2023, but was unoccupied through Aug-December of 2023.

TurboTax Online

Carl11_2

Employee

So long as you were actively trying to rent after the renter moved out, (i.e.; advertised as "for sale or rent" as an example) all costs incurred and paid in 2023 are deductible rental expenses on SCH E for 2023.

Date sold is the closing date of the sale. So you won't report the sale until next year when you complete your 2024 tax return. Any carrying costs will be claimed on the 2024 tax return next year, regardless of what year you actually incurred/paid those costs.

ersu79Author

Thank you Carl, this is enlightening.
This Coop property was not allowed to be rented out after July 31, 2023 (the Coop Board changed the rules after my 30 yrs of renting it out). As I plan to report the sale on my 2024 tax return, will I be allowed to deduct pre-sale expenses incurred in 2023?

Carl11_2

Employee

I was not aware this was coop property. So I don't know if you are the sole owner of a unit what you are selling, or if you're just selling your share of a single unit. Unfortunately, I'm not very knowledgeable on coop stuff. So I'm really not very helpful on this front.

@AmeliesUncle may be of more assistance.