KrisD15
Expert Alumni

Deductions & credits

The easiest way is to end that rental. Select that it was "Converted to personal use".

Enter the basement rental as new. 

Use the adjusted basis for the new basement rental (subtract the depreciation taken for that portion) as the new basis.

 

NOTE: You will need to account for ALL depreciation once sold, so the depreciation for the original rental needs to be added to the depreciation taken on this new basement rental. 

TurboTax won't know this when you sell, you will need to keep records.  

 

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