You will need some forms from your 2021 tax return to enter correct information on your 2022 return.
From the 2021 return you need the two form 4562's that print in landscape format. One is titled "Depreciation and Amortization Report" and the other is "Alternative Minimum Tax Report". Most likely, you'll only use the first one. But have both in case the program asks you anything about AMT taxes.
The next form you will need from the 2021 tax return is IRS Form 8582-Passive Activity Loss Limitations. This form shows your passive activity losses. If this form is not present, that just means you don't have any PAL carry overs. This is becoming more common with the tax law changes of 2018.
When you enter the property in TurboTax 2022 your in service date will be the first day a renter "could" have moved in. Note that you will have to adjust your cost basis to account for both the depreciation you took in the past when it was a rental, as well as the property improvements you did while it was your primary residence in 2021-2022.
First, get the total depreciation already taken on the property in the past. To do that, look at the 4562 titled "Depreciation and Amortization Report". For each asset listed add together the amounts in the "prior eyars deprec" column and the "current year deprec" column. That will be the total of all depreciation taken since you owned the property, for the prior period when it was classified as a rental.
Now add together the amounts in the "Cost (net of land)" column and the "land" column. That is your total cost basis on the property.
Next, you need the total of all property improvements you did on the property. Using these numbers you'll get your "adjusted" cost basis to use for deprecation which will start with the 2022 tax return. The math is:
Original cost basis, minus total of all depreciation already taken, plus the cost of any property improvements you did. This will be your new "adjusted" cost basis.
Depreciation starts over from year one using the new adjusted cost basis. When entering the data in the TTX 2022 program, the cost of the land will not change.
COST: the "adjusted cost basis" as described above
COST OF LAND: the same amount in the "land" column of the 2022 from 4562.
Now, depreciation starts over from year one using the adjusted cost basis.
You will still need to keep the paperwork from the 2021 tax return, as when you sell the property in the future you are required to recapture all depreciation taken in the year you sell it. It also needs to be accounted for if you die. So one way or another, if you don't need it, whoever handles your affairs after you die, will need it.
