All Forum Posts by: Janet Valdivia

Thanks @Ashish Acharya, yeah I've always included a list of Other deductions to support Line 19, but crossing out an expense I don't use to put in something I do, if there are just a handful of things, seems reasonable per Karen's suggestion.  I think the IRS doesn't care so much so long as the numbers add up, but as an overly-methodical perfectionist, I'll probably still do the list.  =)  Thanks for your reply!

Thanks @Account Closed, great suggestion to cross things out to add categories on Schedule E since space for Other is so limited. =)

I know if I refinance a loan on a rental property, the costs associated with the loan are amortized over the life of the loan.  If I pay a loan off completely, can I deduct the wire fee?  What about other fees charged by the lender, such as recording fee?  I'm guessing yes, I can deduct these, but where?  Just add up and list as "Loan Payoff Fees" under Other Expenses on Sched E?  Seems like a dumb question after typing it out, but would welcome confirmation. 

@Michael Plaks, where's the fun in that? ;)  

Thank you @Michael Plaks, that completely makes sense to me, but since they explicitly state that I can't deduct as rental expenses since I didn't advertise for rent while trying to sell (which few people would do if they were really trying to sell), I wanted to make sure I wasn't missing anything.  I do my own taxes, and they've grown quite complex over the years as I've incrementally added new scenarios.  This is the first time I've decided to sell a rental, so had to learn a few things. =) 

I have read IRS publications and scanned forums but can't find a direct answer to my very specific questions.  I sold a rental property last year.  The IRS says "Vacant while listed for sale. If you sell property you held for rental purposes, you can deduct the ordinary and necessary expenses for managing, conserving, or maintaining the property until it is sold. If the property is not held out and available for rent while listed for sale, the expenses are not deductible rental expenses."  That's fine, I understand expenses for the interim period are not deductible on Schedule E.  Specific questions:

- Are those expenses in fact allowed to be capitalized as selling expenses?  It seems the answer must be yes.

- Would this require a 266 election?  If so, is there an issue making this election for only a portion of the year for the property, since it was a rental part of the year with expenses deducted on Schedule E.  I want to elect to capitalize expenses from the time it was taken from rental service until the time it sells.  That's allowed, right?  Do I need to so state in the election?  Do I even need to make the election?

- I don't know whether this matters, but I am a "real estate professional" and also file Schedule C.  

Thanks in advance for any clarity.