How A CPA Can Help You:

Rental Deductions For A Rental Property That Was Once A Home

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David M. Kaufmann, CPA

7200 S. Alton Way,
Suite B-195
Centennial, CO 80112
Voice: 720.493.4804
 (toll-free) 800.326.6686

Fax: 303.796.7768
(toll-free) 888.326.6686

Email: contact2@kaufmann-cpa.com

Facts:

You move out of your home, and want to sell it.

You can't get the price you want, and you rent out your house.

The housing market improves.

Your renter moves out, after the house was on the market for a year.

You put the house on the market.

6 months after your renter moves out you sell the home.

Problem:

For those 6 months, is this house a residence or a rental property? This is important. If this is a rental property for those 6 months, utilities, insurance, repairs, cleaning, painting, new carpet, etc. are deductible. If this is a residence, those items are not deductible.

Solution:

Contact me before the renter moves out.

[Side issue] You don't want to lose the tax-free status of the sale of your residence.