Investors & landlords
This entry is very tedious.
Since you are converting the rental to personal, there should be no 4797, only a Depreciation Schedule.
You will recapture the depreciation when you sell the house.
The exception would be if you took any Bonus Depreciation or Section 179 Deduction on any of the rental assets.
If you ONLY have the building and land, there will be no 4797.
Your Rental "Property Profile" should be completed or carried over from your last years return.
Go through this interview
First is information, such as address
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Select Type, such as Single family
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Select CONVERTED (the second option) and check the box for "I converted this property from a rental to personal use in 2022."
Continue
Select "No, this property was not rented all year"
Enter number of days rented and 0 Personal use
Continue
Yes, I owned 100%
Continue
Select yes or no to being an Active participant
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Did you pay anyone $600?
Continue
Enter my rental info myself
Continue
None of the above
Continue
Next, enter the income you received.
Move to Assests/Depreciation
Start or Update
Yes, I want to go to my asset summary
Continue
Click Edit next to the rental
Select Rental Real Estate Property
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Select Residential Rental real Estate
Continue
Enter the cost and date purchased
Continue
select BOTH "I purchased this asset" AND "The item was sold, retired, stolen, destroyed, disposed of, converted to personal use..."
Enter the end date
Continue
Accept the depreciation and continue
Special handling Required?
YES
Depreciation for 2022 is listed on screen
Continue
Done
Answer the remaining interview questions
Screen shows Profit or loss
In your forms, you should have Schedule E showing the loss (if 2022 Depreciation was more than rental income)
and 4562 Depreciation and Amortization Report, but no 4797
Keep the depreciation report with your tax file and use to recapture depreciation when you do sell.
