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.
Normally, I would expect it to show nothing for depreciation, and would then tell you to just delete the rental property. But that $170 amount is there for a reason, and you need to find what that reason is.
Do I need to go back to last years return and amend it?
To early to tell at this point.
Can I ignore the small amount?
I would not. At least not yet. Take a look in the assets/depreciation section to see if you can identify what asset(s) is/are showing depreciation more than zero. You "may" need to work through each asset one at a time to find it. Pay attention to detail as you work through each asset. I'm wondering if you marked an asset as converted on 12/31/2020 and maybe the program using the mid-month convention incorrectly figured depreciation to 1/15/2021. With such a low amount, that's what it looks like. But we need facts.
Let me know what you find.
Since there was no rental use in 2021 and you have all the pertinent records, you can just say you did not attempt to rent in 2021. This will remove it from your return.
When it comes to IRS matters, don't guess anything. Especially don't just remove it from your return yet, until you "Know" what's going on here.
