1 - By changing status from a rental property to personal use the depreciation stops (after last rental occurs)
Yes. You have to work through each individual asset to to that.
2 - Utility expenses after that are considered "Carrying Cost" which can be added to the selling expense to reduce capital gains.
Nope. Once you convert it to personal use, nothing after that date of conversion is deductible on SCH E. Absolutely nothing. The only deductions you can claim are all SCH A itemized deductions, and they are mortgage interest and property taxes. That's it.
If you sold the property shortly after the last tenant vacated, there's really no need to convert it back to a rental. Just leave it classified as a rental and report the sale in the SCH E section of the program.
