Question for the Real Estate Tax Gurus

[tj]

I have a condo that started as a primary residence, then became a rental property. After the final tenant moved out, I am still stuck paying a mortgage, HOA, utilities etc until the unit is sold.

Does the mortgage interest for these months get deducted on Schedule A, E or somewhere else?

Are the utilities and HOA not deductible for these months?

[forummm]

My understanding is that if the property is still only an investment property (e.g. you're still trying to find another tenant or sell it for a profit) then those are still business expenses.

[SDREMNGR]

Once it became an investment property, it stays as one.  You should just do the same thing for taxes as you did for the years you had it as an investment.

[tj]

Good to know, my confusion is that the IRS publications state tahtt o be considered a rental property, it needs to be rented at a fair market rate or marketed as such, obviously if I am trying to sell it I am no longer trying to rent it.

[powskier]

mmmmmmmmmmmm it is just a vacant rental, expenses and no income.
 And then you sold it on one day.

[cheddarpie]

I think there may also a requirement that it has to be on the market (available to rent or trying to sell) in order to deduct related expenses. Anyone know for sure?

[clifp]

I'm not a 100% sure, but I think if you filed taxes for it the previous year as a rental property, it would be treated as a rental propety this year and you would use Schedule E.
If you have  a substantial profit you might be better off treating as a residential property  in order to take advantage of the capital gain exclusion.  If you lived in it for 2 out 5 years you could treat as residential property, but you need to read the IRS rules.  FYI, I've found that folks at fairmark.com forum give some of the best tax advice on the internet, lots of CPAs, current and form IRS employees.