I have a similar situation. What did you mean "convert" to rental property not the day you rented it out? How are those different?
With my situation, I have a marital home that was a VA loan, purchased in 1996. We divorced and I refinanced, putting the home in just my name. First would that be the new purchase date? Second, just like this other couple, when 2008 hit, my mortgage went upside down. In 2010/2011, I moved and being upside down, was not able to sell so I rented it out. I didn't make any profit off of it and I never claimed a depreciation on it. I rented the home I was in in another town. I was about to move back to my home in December 2019 but my tenants asked to buy it. We came to an agreement and closed in January 2020. With Covid, finding a new home was a real challenge, but I finally closed on my new primary residence, which yes, I do reside in, in September of 2020. Now I'm doing my taxes and freaking out. Can this be an exchange? I'm worried that I'm giving up my savings in taxes. Help?
