sale of rental property

I am in the process of evicting a tenant. She has trashed the house. After I get her out, I will fix up the house and put it up for sale. I will probably only be able to sell it for 20,000 more than I owe. It will cost about 5,000 to fix up. What can I do tax-wise about repair costs, court and lawyer fees? What about the rental income lost during eviction process? Also, do I have to pay taxes on the whole 20,000 even tho the realtors get 6%? Thank you

What can I do tax-wise about repair costs, court and lawyer fees?
Repair costs, court and lawyer fees are rental expense, so you can deduct those against rental income.

What about the rental income lost during eviction process?
There is no deduction for loss of rental income. The tax benefit that you get from that is that there is no income to report.

Do I have to pay taxes on the whole 20,000 even tho the realtors get 6%?
The tax is not figured by subtracting the amount you owe from the sales price. To figure the tax you start with the sales price, then subtract your basis in the property (that is the amount the property cost you, plus additions you made, less depreciation you have deducted), lastly subtract realtor’s fees and all other costs of sale.

See IRS Publication 527, Rental Property, for the treatment of income and loss from rental property. And see IRS Publication 544 Sales and Other Dispositions of Assets for how to figure the tax on the sale of the building. You can download the publications free at the IRS site at: [url]http://www.irs.ustreas.gov/forms_pubs/index.html.[/url]