DianeW
Expert Alumni

Investors & landlords

The passive losses should be linked to this rental property/activity. They can be used until the income allows them to be used or until you sell the property, if ever.

The assets, including appliances, the adjusted basis of the home, etc will all retain their adjusted basis and depreciation will continue except that now it is for only part of the year when it is rented vs the personal use time periods.  It does get a little complicated in TurboTax with mixed use.

The situations have changed so all the deductions and depreciation should be calculated correctly if you make the correct choices on the "Do any of these situations apply to this rental?" Keep in mind that the expenses will be prorated according to the days of rental use.  You do have to answer "No" it was not rented all year and then the number of days at fair rental value. 

This will also calculate the correct depreciation if the assets are still listed, if not you must enter them exactly as they were on your 2016 tax return with basis, and accumulated depreciation to the date of personal conversion in 2016.

Click the images attached to enlarge and view for assistance.

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