Tax Deductions for Expenses When Selling a Investment House

Tax Deductions for Expenses When Selling a Investment House

Member since 2020 · 1 post · 0 votes

My tenant moved out my investment property on 3/31/2019. I found many problems need to fix before I can rent it out again.. I did the following things"

1. Fixed water leaking in two bathrooms and ceiling.

2. Replace damaged floor.

3. Repainted whole house.

4. Clean up yard.

Repairing progress was slow because I was busy in selling my primary house and relocation from California to Texas. Finally, I decide to sell it and use 1031 exchange to exchange three replacement investment properties in Houston. This investment property listed for sale on 9/19/2019 and sold on 11/2/2019. My questions are:

1. Does this 1031 relinquished property still been treated as a rental property even the tenant has moved out and vacant for 5+ months before sold?

2. Can I claim all expenses (insurance, depreciation, utilities, taxes, and mortgage interest) occurred after tenant has moved out and before sold?

3. Can I claim painting (inside and outside) expenses as part of my rental expenses?

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