client has a property that’s he owned for 20 years and was rented for 8 years up until end of 2016. No end of rental claimed on schedule E at end of 2016 or 2017.
The property was not rented in 2017, the client remodeled the home and I believe this would be considered as personal use. He later sold the property in May 2017.
The mortgage and taxes are being written off on schedule A, no expenses are allowed because of no rental use and the property was not available for rent during this time. The client has another home he’s living in also.
I’m confused on using 4797 part III or just schedule D home sale to report the sale of the property? The property was not rented or offered for to rent in 2017 and used to remodel and prepare for sale. I know we have to add back depreciation claimed in both cases. The property was put on market in April.
2. Also, am I required to file an schedule E to show property was not rented in 2017 and end rental terms?
The property was not rented in 2017, the client remodeled the home and I believe this would be considered as personal use. He later sold the property in May 2017.
The mortgage and taxes are being written off on schedule A, no expenses are allowed because of no rental use and the property was not available for rent during this time. The client has another home he’s living in also.
I’m confused on using 4797 part III or just schedule D home sale to report the sale of the property? The property was not rented or offered for to rent in 2017 and used to remodel and prepare for sale. I know we have to add back depreciation claimed in both cases. The property was put on market in April.
2. Also, am I required to file an schedule E to show property was not rented in 2017 and end rental terms?
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