A new client comes in and other than the usual at the very end has a sale of a Condo in Gulf Shores. He has written out this big dissertation that basically says the following. Purchased a Condo at the end of 2006 and immediately put it up for rent (haven't they all) however it never rented out until 2010 when it rented for three months (summer Months) and it hasn't been rented since. Purchase Price $189,900 + another 10K in furnishings. Sale Price in 2015 $89,000. My opinion Personal non deductible of course the client thinks otherwise as I would if I was in his shoes. Only 1 Schedule ever filed for the 2010 rental for three months prior to that second home mortgage interest expense taken on Schedule A after 2010 standard deduction as the condo was paid off. Any thoughts?
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The 2006-2009 tax return clearly state it as NOT a rental. No Schedule E and mortgage interest being reported on Schedule A means it is a second home.
If the 2011-2014 tax returns don't have Schedule E, they also indicate that it was not a rental. -
you are dealing with three months of depreciation only .....not sure exactly what you want answered.Believe nothing you have not personally researched and verified.Comment
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