Repurpose property

[jerrywacaster]

I own a house that has been used 75% as a schedule C business and 25% as a schedule E rental (garage apartment). I want to move this property now to a single schedule E rental. Any advice as to how it should be handled on the tax return and through TurboTax? Can I transfer the accumulated depreciation to the single Schedule E rental?

[PatriciaV · Accepted solution]

For clarity and simplicity, it's probably best to create a new Schedule E rental property. When you add the property as a rental asset, TurboTax will ask you about prior depreciation, where you can enter the combined depreciation from your Schedule C business and the previous Schedule E property.

You will also need to remove the property from both Sch C (75%) and Sch E (25%). You can simply report it was converted to personal use. You may need to adjust the "sale" information to result in a zero gain/loss.