Sale of Home after it was rental prop

[EAMoe]

A client moved in with another relative and rented out her house for 8 months and then when the tenant left, she sold the house. All of this occurred in 2012.

It was her main home for 2 of the last five year. She has a gain but well under the exclusion.

Q) Do I take depreciation for the 8 period it was rented
Q2) She made some permanent improvements( flooring) and I was wondering if I can deduct that as an expense? Between property taxes and all, income from the rental has been reduced to reflect a small loss.

Where do I report the sale of the property?

[BHoffman]

A client moved in with another relative and rented out her house for 8 months and then when the tenant left, she sold the house. All of this occurred in 2012.

It was her main home for 2 of the last five year. She has a gain but well under the exclusion.

Q) Do I take depreciation for the 8 period it was rented
Q2) She made some permanent improvements( flooring) and I was wondering if I can deduct that as an expense? Between property taxes and all, income from the rental has been reduced to reflect a small loss.

Where do I report the sale of the property?

Did she rent it for Fair Market Value? If not, you could report the rental income on Line 21 and the mortgage interest and property taxes on her Sch A. No depreciation. The improvements increase the basis.

[EAMoe]

Thanks for that suggestion. She had rented it out at FMV, using a realtor and has all the necessary documentation. The tenant later slipped out and she then placed the house on the market and sold it within a month.

I didn't take deprecation for the 10 months nor for any permanent improvements. The ordinary mainitenance expenses, sucha s utilities I did include as expenses.

[WhiteOleander]

You don't take depreciation on something placed in service and taken out of service or sold in the same year.