Sale Of Land

[tonia2021]

A customer had farm land that she has rented out in the past. This year there is no income from the land rent since the land was sold in June. Prior to the sale, she had to make $3500 in repairs to the farm to make it ready for sale. She also had to take $6000 from the sale and pay the land taxes.

Should these expenses be rental expenses (there is no rental income), or should they be cost of the sale?

Thanks

[solomon]

I would say

the 6K was a rental expense with a description of "post sale" expenses or taxes. The 3.5K I would think would be part of the expense of the sale. Emphasis on "think."

[thomtax]

As solomon says

with emphasis on "think", I would agree with him.