Question

Converted a 100% rental to 50% rental/ 50% personal use

Forum|Forum|4 years ago
March 9, 2022
1 reply
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In 2021, I moved into my rental property, which I had rented 100% and depreciated on previous year’s taxes. As of April 2021, I now occupy 50% of the property as my primary residence. How do I effectively end the 100% rental period and then divide between 50% personal use and continue to depreciate the other 50% I am still renting in Turbotax and report the rental income? @Carl11_2

I have made no major additions or improvements in the last couple of years when I was renting the property. How do I determine the new basis for the structure for the current period of 50% / 50% use starting April 2021? Do I need to refer to the old basis amount with depreciation?

TurboTax Premier Online

Critter-3

Since I doubt you entered the property as 2 separate assets to begin with you will now need to do so to split them up.

First take the asset out of service by converting it to personal use as of the first of the year. Then take 1/2 of the basis that was being depreciated and enter each side as a new asset with the same start date you already used and 1/2 of the prior year depreciation.

Then convert that new asset you now live in to personal use as of the date of conversion.