Rental Deductions for SFR Sold - Posted by Alejandro O
Posted by Alejandro O on June 14, 2006 at 18:59:48:
Just a question to anyone out there with a reasonable knowlege of what is legit and what is not when it comes to IRS taxes. Please don’t reply with the obvious answer - talk to your accountant. If there are any CPA’s out there that have a good answer to my question I would appreciate it.
In January, I moved out of my primary residence, and listed the home for sale. It finally sold in May. Can I claim the related expenses (utilities), interest paid, depreciation, etc. incurred on the home on schedule E of my return? The property was never used as a rental during its listing period. What evidence would have to be provided to say it was an unoccupied rental. I guess one could argue that nobody wanted to rent a house that was for sale. Or, do I just have to claim the “claimable” i.e. interest and depreciation on my personal deductions, along with those of my new primary residence?
I will be going over all of this with my accountant in a couple of weeks, but this question is burning in my head and for my own sanity, I’d like to know soon. Thank you everyone for your input.