I have a similar issue: I converted our rental last year 2020 to personal use. I "stopped using the asset as a rental" & I went through the asset/depreciation categories last tax year to convert them to personal use instead of rental. I saved a printout of all the forms for future info for when we sell the house.
This year it is still listed in the rental area. My concern is that it still has a depreciation amount attached to it that is pulled from last years info. It's only $170 but the fact that there is an amount is my concern. I think I must have missed something when I was going through all the different parts to convert them. I'm not sure what this means for moving forward.
Do I need to go back to last years return and amend it? Can I ignore the small amount?
We are planning on selling the house in a few months as that would be the 2 years of 5 as having it converted back to a personal use house. Does this affect the 2 year part?
I was trying to figure it out (for this year) and entered the usage as 0 or something similar and the entire thing disappeared. It no longer lists the house at all. Basically it deleted it from the return.
It changed the amount of the return/owing by about $3000, so I know it did something major. I did have loss carryover that was suspended attached to that house from last years return but I thought it wasn't a factor since I had said it was no longer a rental.
I'm not sure if I need to start over since it is now deleted or if I want to delete it anyways??
Am I supposed to delete that rental house & info the year after converting it??
I'm very lost at this point as to what to do. I have searched and tried to read threads explaining all of this but I am still very confused how to move forward. HELP
