Removed Property from Market and Schedule E

3 Replies

Hi there, 

What happens when one stops renting a particular property. 

This is not related to a sell, so no recapture taxes apply. The reason is simply that there was no effort to rent such unit for a year.  This is not due to market conditions or improvements. 

In that case, I assume no deductions and depreciation can be taken on Schedule E.  Sch. E would show losses, but zero income. 

Are all the deductions simply paused until a future year?  

If the unit is eventually turned into a private residence, this will trigger Schedule A instead. 

Thanks, 

Originally posted by @Natalie Kolodij :

If there was no attempt to rent it it wans't a business. 

There are no business deductions. 

They should talk to their tax professional. 

Thanks. Understood. It's parked until the next season. 

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