Anita01
New Member

Investors & landlords

Yes, you need to do what you've suggested.  Mark the k-1 as final.  Enter each asset and say you converted it to personal use.  That will stop the depreciation without making you come up with fake sale numbers.  Keep this final k-1 that shows accumulated depreciation, because the amount of depreciation taken will become taxable if and when you sell the property, even if you meet all the conditions to exclude gain.  Depreciation is taxed, then any allowable gain exclusion is applied to the remainder of the gain, over and above depreciation.

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