Carl
Level 15

Investors & landlords

Is there an option to treat it as a second house and not as a rental?

Sure. Work through the rental and towards the beginning select the option for "I converted this property to personal use in 2019". But that's not all.

You also have to work through each individual asset listed in the Assets/Depreciation section and select the option for "I stopped using this asset in 2019". Then on the "Special handling required?" screen you *MUST* select YES. (If you select NO, then you are saying you sold the property and you will be *forced* to enter sales information)

Understand that after converting the property to personal use on your 2019 tax return you will need to print the SCH E, all three IRS Form 4562's associated with that property and the IRS Form 8582 and keep those forms *FOREVER*. They will be needed in the future (I guarantee it) when one of three things happens in your life.

1) You convert the property back to a rental or *any* *other* type of business use.

2) You  sell the property

3) You die.