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Conversion of rental property to personal use
Property was converted from rental to personal use on 4/30/22. Turbo Tax premier is calculating proper depreciation for partial year and there is small net rental income after expenses for the year. It is also showing a disposition of the rental house on Form 4797 with 0 proceeds less the total depreciation taken over the years and it is allowing a current year loss to the extent of the net rental income. This does not seem right to me that a disposition will be reflected on Form 4797 since the rental property was not sold, and moreover that any loss on sale of a property would be allowed.
‎February 12, 2023
10:06 AM