Is it a flip OR Rental gone wrong?

[Angie Jay]

Hello everyone, 

Have a Tax related question and looking for some clarification. It's the first time selling. and getting some different answers from accountant, so im confused as to what to do.  Here's the background

In 2017 bought a rundown house with the intention to fix then maybe flip or rent depends. ( Filed the property on schedule E, treated the same as other rentals), However had a lot of issues with contractor, long story short, Sold the house in 2018 ( Less than a year) at a loss just to get rid of the headache. It was never rented and had no income if that matters?

Now filing for 2018 tax, first Question: should this house go on Schedule E again ( as if it's not sold) and all losses are deductible on Line22? from what I read, since the property is sold, it doesn't go on Form 8582 and we can realize all loss from 2018 and 2017,  2018 loss can go on Schedule E, but where do I enter the loss from 2017? 

I thought the sale should be filed on f4797 section II since it's <1yr? but told by an accountant it should go on schedule D since there is no income. Who's right?

I am a bit confused and would really appreciate any inside. or any RE experienced CPA to talk to.

Thanks