Our rental sold; we tried to rent it & advertised, showed, took apps. At the same time (about June 2018) we listed with the agreement that if we found renter For Sale agreement ended. We sold end of Sept. Do we use the actual closing date as the end of rental (as schedule E asks for how many days offered for rent). I suppose depreciation, insurance and all other expenses would use the same date? Thank you
If you sell your rental property, which is a “capital asset,” and make a profit, the profit is called a “capital gain.” Typically, you’ll have to pay capital gains tax on this profit, but if you use a maneuver called the “Section 1031 exchange,” for one example, you’ll be able to avoid the tax.