Camp1040
Level 11
03-30-2022
09:10 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
It never became a rental or even rentable due to condition as you stated, but the TP did have the intention of turning into a rental by his actions and deeds. I would report it on Schedule D as investment property so as to generate a loss although limited to $3000.
Since it was never placed in service, Seems like form 4797 is NOT the place to report it.