To answer your question of...
What is the correct method on Turbotax
When you start working through the rental, a few screens in select the option to indicate that you converted the property from rental to personal use. Then just keep working through "as if" nothing changed.
Of course, in the expenses section you can only claim rental expenses incurred up to 10/31/2020.
Now when you work through the assets/depreciation section, you have to edit each individual asset listed, one at a time and work each one through.
- You'll indicated that you "stopped using this asset in 2020".
- You'll indicate that you converted the property to personal use.
- On the "Special Handling Required?" screen, you *must* select YES. If you select NO, then you will be *FORCED* to enter sales information. You did not sell the property in 2020, so you *must* select YES.
Note that you must do the above for each individual asset listed in the Assets/Depreciation section.
For property taxes and mortgage interest, if you elected to have the program do the splits for you, then one month's worth of property taxes and mortgage interest will automatically be transferred to the SCH A. So when you get to the Your Home section under the deductions and credits tab, make absolutely certain that you read "EVERY" "WORD" on every screen. It will inform you of the property tax and mortgage interest amounts that are "ALREADY ENTERED" on the SCH A for that property, for the period of time (1 month) it was personal use.
