For personal use, I did not have renters from Jan - June (sale date) 2022 and was using this time to renovate. Can I convert the condo back to personal use from Jan - June 2022?
I think you worded your question wrong, and are asking if you can convert it back to a rental. If you converted it to personal use on your 2021 tax return after the last renter moved out, then leave well enough alone. Otherwise, assuming you did not rent or attempt to rent the property in 2022, you have two choices.
1) Amend your 2021 tax return and convert the property to personal use with an effective conversion date of one day after the last renter moved out. This will stop depreciation on the date of conversion - meaning less depreciation to recapture on your 2022 tax return when you report the sale. This also means you will not be reporting anything what-so-ever on your 2022 tax return on SCH E concerning this property.
2. Wait until you start your 2022 tax return and convert the property to personal use with a conversion date of Jan 1, 2022. Absolutely nothing concerning your property improvements will be reported on the SCH E of your 2022 tax return either, since your property improvements would never be placed "in service" as a rental asset. This also means that any depreciation taken on the 2022 tax return would be minimal, if any at all. Finally, you would not be able to claim "any" rental expenses in the rental expenses section either.
And will that help my personal use date calculation?
Exactly what is it you need to "calculate" for personal use? You don't qualify for any capital gains tax exclusion on any gain realized from the sale.
I took ownership June 2013 and started renting June 2018-Dec 2021.
I don't see how that matters here, since you don't qualify for any capital gains tax exclusion.
Since I will also have my home, does converting the condo to personal use in 2022 for six months affect anything with my personal home?
No. The rental converted to personal use just becomes a 2nd home - not your primary residence. With either choice 1 or 2 above, you'll be reporting the sale in the "Sale of Business Property" section. That's where you'll deal with including the cost of your property improvements in your cost basis.
Now that I'm re-reading your original post, it seems to me your first matter right now, is you need to figure out your cost basis on the date you "took possession" of the ex's half of the property. It depends on the laws of your state. I don't know if you took possession as part of a divorce decree/agreement, formal separation agreement, or whatever since you merely state you were "separated". I don't know if you get a step-up in basis of the half you took possession of, or if you retain the original cost basis. I just don't know. Depends on the laws of your state I would think, when it comes to separation and/or divorce. Heck, maybe you were not married to the other owner at all? Lots of legal things to deal with there for which I would suggest you seek professional advice..... especially if your state taxes personal income.
