I do this even if i did not move back into the old house?
Yes. If you did not even attempt to rent the property in 2020, then it's no longer business property. It's personal use property. What you use it for on the personal side is irrelevant. It could sit empty for all that matter.
how do i know if i get to carry over 2019's operating loss?
If you convert the property to personal use *AND* if you actually have any carry over losses from 2019, they're already imported into the 2020 program. We'll deal with getting that data only after you have completed the process of converting the property to personal use. Those numbers for depreciation and carry over data will not be correct until "after" you have completed the process of converting the property to personal use.
The program needs a specific date that you stopped using the asset for business. Only then can it determine things like your "definitive" total amount of depreciation taken on the property.
-When you elect to edit the rental property itself, about 3-4 screens in is a selection for "I converted this property from a rental to personal use in 2020". Select that option, and press on through the program.
In the Assets/Depreciation section you *MUST* do the following for each individual asset listed.
- Elect to Edit that asset and start working it through.
- On the "Did you stop using this asset in 2020"? Select YES.
- For "Special Handling Required?" Select YES.
- For your conversion/disposition date, enter 1/1/2020.
- On the final summary screen, write down the name of the asset, the total amount of depreciation taken in prior years, and the amount of depreciation (f any) for 2020.
Do the above for each individual asset listed.
When completed, add up all the numbers you wrote down to get the total amount of depreciation taken on the property and all assets.
Then select the FILE tab, and under that tab select the sub-tab for "Print/Save for your Records". Save what you have as a PDF file.
Then double-click the saved PDF file to open it. Search that PDF File for IRS Form 8582. Print all three pages of that form. It has your carry over losses on it, which you will need for reporting the sale. Take note that if you don't have the form 8582 in the PDF file, then you don't have any carry over losses. Due to tax law changes in 2018, it's beginning to become more common for there to not be any carry over losses.
