KrisD15
Expert Alumni

Investors & landlords

Yes, if the property was used as a rental at all during 2023, that last screen would show the 2023 depreciation and transfer that to Schedule E.

HOWEVER the previous screen is not what would be used for a rental after reporting that it was converted 

 

It looks like the rental is being disposed under 

Personal Income

Less Common Income

Sale of Home

 

THIS IS NOT WHERE IT SHOULD BE REPORTED.

 

After you select "Yes" for special handling, the program should show you the screen you posted above for the 2023 depreciation and that should be the end of it, (unless you took Section 179 on any rental assets).

 

Please check 

Personal Income

Less Common Income

Sale of Home

and make sure nothing is listed there

 

 

 

When a rental is SOLD, there is usually depreciation that needs to be "recaptured" or paid back. 

When a rental is converted to personal use, that "depreciation recapture" is deferred until the property is eventually sold. 

 

 

 

 

 

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