KrisD15
Expert Alumni

Get your taxes done using TurboTax

Yes, until you converted it, you should have continued to claim the depreciation. 

 

If you filed for 2013 and at that time reported converting the property to personal use, the depreciation would have been recaptured on that tax return. 

 

If you did not do that, and it sounds like you didn't, the IRS would most likely take the stand that it was still a rental until you sold it. 

 

  • You can amend your 2013 tax return and convert the rental to personal if it results in tax due (and most likely it would, there is no time limit on amending to pay tax)
  • You can recapture depreciation, including years 2013 through the date of the sale, whether you actually claimed that depreciation. In this case, you can amend the last three tax years to claim the depreciation. If you made improvements and/or repairs, these could be expenses or capital improvements reported on the amended returns, or they could increase the basis of the rental property. 
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