DavidD66
Employee Tax Expert

Investors & landlords

You should amend your return to take the property out of service.  Otherwise, the program will continue to depreciate the property as a rental even though it is no longer a rental.  As for determining the beginning of the two year period, it begins when you make it the property your personal residence.  You have to live in the house as your primary residence for any 24 of the 60 months just prior to the sale.

 

In the rental property section under your Property Profile, indicate that in 2019 you converted the home from a rental to personal use.

 

On the page, Was This Property Rented for All of 2016?, answer 'No' and enter the number of rental/personal days. Then navigate to the Asset section to dispose of the property. Do this for any other assets you may have been depreciating as well. This will calculate any remaining depreciation up to the conversion and remove the worksheets going forward.

See attachments.

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