Example:
You purchased rental property in 2010 and rented it out from 2010 through 2015. In 2015 you converted it to personal use and lived in the property as your primary residence from 2015-2019.
Then in 2019 you converted the property back to personal use.
TurboTax *CAN* *NOT* *CORRECTLY* handle this situation. You have to fanagle the dates for the program to handle it correctly. So lets get down to more specifics to show how this is done.
When you converted the property to personal use in 2015 you "should" have printed out the 4562'a showing the total depreciation taken on the property to date up to the date you converted it to personal use. You should have also printed the 8582 showing the total of all passive loss carryovers up to the date you converted it to personal use.
Let's say you converted it to personal use on June 30, 2015 and converted it back to a rental on July 1, 2019. That is "exactly" three years to the day.
If you originally placed the property in service in 2010, then you will need to "shift" your personal use for three years, to the the first three years you owned the property. So on your 2019 return you will change your "in service" date from whatever day in 2010 you originally placed it in service, exactly three years forward to 2013. The program will then be able to "correctly" account for all prior year's depreciation already taken and will not "flag" the prior depreciation number you will enter, as being in error or to far off.
One problem that can (and will) arise if if the in service date is "shifted" to certain months, then instead of using mid month convention for that first year, it "might" use the Half Year convention, thus making it impossible to get your "prior years depreciation already taken" figure to be accepted as correct by the program.
