itonewbie
Level 15

We were not clear in your question but I assume the property was taken off the market as of 8/1/2017 and was not available for rental during the intervening period.

Since the rental property constitutes a passive activity under §469 and should, prima facie, not meet the de minimis exception under the regulations given the amount of gross income that would have received during the year, it cannot generally be treated as an investment property for purposes of §163.

In the past, otherwise deductible expenses incurred in relation to the retired rental property pending a sale may be deducted under §212 but 2% miscellaneous itemized deductions under §67 have since been suspended under TCJA.

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Still an AllStar

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