Question

Ending depreciation on a rental property

Forum|Forum|4 years ago
February 2, 2022
1 reply
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We purchased a vacation property in 2015 and rented it to various tenants while living in our primary home. We sold our primary home in December 2020 and moved permanently into the rental property effective January 1, 2021...there were no rentals in 2021. How do I end the depreciation and deductions currently set up for what was our rental property in Turbotax and treat it as our primary home?

M

Mike9241

before you do anything, you must make a record of the cost of the various assets, depreciation taken on each any suspended passive losses.

this is because when you sell the property depreciation taken or should have been taken needs to be recaptured (1250 gain) any suspended passive losses are not allowed until you sell the property.

to stop having e a schedule E you'll need to delete it along with all the assets. everything will disappear and Turbotax will no longer track depreciation, PAL loss carryovers or cost. you may want to print out the depreciation schedule from the 2020 return along with form 8582