Question

I rented my house partly(1/3) in the first 10 months from Jan to Oct. And convert it from personal use to 100% rental. How I can file this rental in Turbotax?

Forum|Forum|4 years ago
April 3, 2022
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TurboTax Online

Employee

On what date did you convert the house from 100% personal use to 33% rental? Then on what date did you convert that 33% rental back to personal use, to make the property 100% personal use? Then on what date did you vacate the property? Then on what date did you convert the entire property to 100% rental?

Basically, when converting the property to 100% rental, you have to reduce the cost-basis by the depreciation already taken when the property was only 33% rental.

L

lishiji56Author

Thanks Carl for your quick response. I rent 1/3 it from Jan to October 31. And fully converted it to 100% rental at Nov 20. So pure personal use is from Nov 1 to Nov 19. I didn’t do depreciation when partly rent. I didn’t see a method in TurboTax for input these different periods. I can choose partial and convert to rental but I have no way to prorate all of the three time ranges.

Carl11_2

Employee

A property that is rented for less than one year, where the start/end dates do not cross tax years, does not have to be depreciated. So you should be fine for the 33% rental period. But you need to confirm beyond a doubt that no depreciation for it is showing on your 2021 tax return for the period it was 33% rental.

I assume you entered it on SCH E. If so, please take a look in the assets/depreciation section and if the property is listed there, elected to edit it and work it through. Let me know if it shows any depreciation, regardless of how small. We'll go from there.