Question

Primary residence partial year rental

Forum|Forum|5 years ago
April 26, 2021
2 replies
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I rented out my primary residence from 2011-2015, during which time I depreciated it based on the original cost basis of 185,000.

I moved back in 2016 and stopped depreciating (but did not "convert to personal use", just stopped depreciating it and instead began reporting it on my schedule A).

In 2020, I rented it out for part of the year, from 3/1/20- 9/31/20. I moved back on 10/1/20.

Am I correct that on my 2020 Schedule E depreciation for this property, I should start over, placing it in service on 3/1/20, with a new cost basis equal to the original basis minus the accumulated depreciation from 2011-2015?

I have entered this information, along with converting it to personal use on 10/01/20.

My depreciation amount is showing up as $0. Should I not be allowed to take depreciation for the part of the year it was rented?

Thanks

Not A Product Question

ColeenD3

You are not allowed to take depreciation for any property that is placed in service and removed in the same year. Report your income and other expenses and omit the depreciation.

Carl11_2

Employee

In 2020, I rented it out for part of the year, from 3/1/20- 9/31/20. I moved back on 10/1/20.

If you converted the property to a rental, and then back to personal use in the same tax year, you do not depreciate the property at all. Simply enter a cost basis of *zero* for the property, and no depreciation will be taken.