TaxGuyBill
Level 15

@LINDAAHILL wrote:

converted from owner occupied to a rental in 2013


 

If it was converted from personal use to a rental, that means it was a rental when it was sold, right?  If so, it is sold as a rental and the sale should go on 4797. 

In the event the FMV in 2013 was less than the Adjusted Basis at that time AND it was sold for less than the current Adjusted Basis, you might need to factor in the 2013 FMV.  But if it was sold at a gain, don't worry about that at all.

Unless they moved due to "Qualified Official Extended Duty" (usually a change of military orders), nothing needs to be indicated about it formerly being a Principal Residence.