Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Depreciated rental property becomes client's principal residence

pacoford
Level 4

My client had a rental property which was depreciated for a few years. August 2020 he sold his principal residence and moved into rental property as his new principal residence. How do I remove property from depreciation schedule?

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Best Answer

Accepted Solutions
Just-Lisa-Now-
Level 15
Level 15
only input a date, no zero

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

View solution in original post

6 Comments 6
Just-Lisa-Now-
Level 15
Level 15
You enter the date it was taken out of service as a rental in the disposal section of the asset entry worksheet. Do not enter a sales price, just put the date. Then print out the depreciation details sheet for when the property ever sells, so you can recapture the deprecation taken while a rental.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
pacoford
Level 4
Thank you, I had followed the procedure as you advised but I am showing a substantial loss. Is that correct? Should I do the same with land?
0 Cheers
Just-Lisa-Now-
Level 15
Level 15
if all you input was a date, you shouldnt show any gains or losses, nothing was sold.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
pacoford
Level 4

I think I figured it out...I entered 0 for sales price and the line should be blank, correct?

0 Cheers
Just-Lisa-Now-
Level 15
Level 15
only input a date, no zero

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
pacoford
Level 4

Thank you again!!! The numbers look right.