Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-11-2016, 03:00 PM
Junior Member
 
Join Date: Mar 2016
Posts: 1
Sale of Rental Property

Hello,

I have a tricky rental property question. Here are the details of the transaction:

Originally purchased home on 1/25/08 for $89,900
Converted to rental property on 8/1/13; FMV ~$93,000 and cost basis $89,900 (used $89,900 cost basis for depreciable basis; no improvements to home to increase basis)
Passive rental losses of $800 for 2013
Passive rental losses of $5,788 for 2014 (includes period of vacancy; see below)
Listed house for sale 3/20/14 (not sold until 3/30/15)
Rented home until 7/31/14
Pending sale 12/31/14
House was vacant and listed for sale 8/1/14 to 3/30/15
Sold home 3/30/15 for $89,000; selling expenses of $7,249; Total depreciation taken $5,176

Here are my questions:

1) Can I deduct rental expenses (including depreciation) for the period the home sat vacant from 8/1/14 until the pending sale at 12/31/14? IRS guidelines per publication 527 say you can't deduct vacant home expenses unless it was advertised for rent, but if it wasn't advertised, but available to rent until the pending sale, are those expenses typically deductible?

2) What losses (if any) are deductible in 2015? I think, at a minimum the passive activity losses of $6,588 are deductible.

3) Does the sale of the house go on form 4797 as a sale of a business asset or since it was occupied as a main residence 2 of the last 5 years this would be N/A. In fact, nothing on the sale would be reportable since it was sold at a loss and would not be considered a business asset at the time of the sale. In short, what is the treatment of the house when it was vacant 8/1/14 to 3/30/15?

4) Any other considerations?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Sale of rental property Azref2627 Rental Real-Estate 3 09-17-2015 02:42 PM
Tax on Sale of a Rental Property ashina74 Rental Real-Estate 0 10-16-2014 10:56 AM
installment sale to rental property krnacct Rental Real-Estate 0 03-03-2014 05:21 PM
Can Suspended Losses from Rental Property converted to Personal Residence be released upon sale of another rental property? mountainaire Rental Real-Estate 1 04-05-2011 03:59 AM
Sale of Rental property formerly used as personal residence Kato Rental Real-Estate 2 03-19-2011 03:02 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.