@Carl, thank you for the detailed reply. As you noted, I made some mistakes in how I handled depreciation when I converted the property from rental to personal use in 1989, and again when I converted it back to a rental in 1992. In hindsight, I now realize that I should have started with a new adjusted cost basis in 1992, when we moved out of the property and it became a rental for the second time.
I also made a big typo in my original post, where I wrote:
When I do my 2023 taxes I will state that the property was rented for only 10 days in 2023.
That was entirely wrong. What I meant to say was: On my 2023 taxes, I will state that the property was OWNED for only 10 days in 2023, and was not rented or offered for rent for ANY days in 2023. So at no point am I going to state that the property was ever placed back in service as a rental unit after my last tenant moved out on 4/9/22.
I will take your advice to convert the unit back to personal use with a conversion date of 4/10/22. When I do that and get to the "Was This Property Rented for All of 2022" screen, I will answer "No, this property was not rented all year," and will show Days rented = 99, Personal use = 266 (rather than 0). Is there anything else I need to do in the TT 2022 program in order to convert the property back to personal use?
Re: "carrying costs" that I referred to when I said:
But what about the carrying costs that I incurred AFTER 4/9/22, when the tenant moved out,
These expenses were partly comprised of property tax and mortgage interest , so I will list those on my 2022 Schedule A, as you advised. But I also paid about $8,000 worth of other co-op fees (HOA fees) during the 2022 remodeling phase -- none of which were property taxes, mortgage interest, or insurance. Will I be able to claim that $8,000 portion as a "carrying cost", or deduct it in any other way, when I enter the sale of the property on my 2023 taxes?
