Hello Taxshack,

I responded to you earlier in the day but my response doesn't show so I am responding again.

I do not think that I want to open up a 8825 form to deduct the organization expenses and the mortgage costs because this never became a rental and was sold as construction in progress.

I talked to two other people about it and one told me to put it on page 1 of the 1065 as other expenses.  And the other told me to put it on the 4797 form as an ordinary loss.  What is your opinion of these two approches.

John