Investors & landlords

Here are the instructions from Expert KrisD15 to convert from Rental to Personal use in TurboTax Home and Business. As she mentioned, the entry is very tedious.

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

Continue

Select Type, such as Single family

Continue

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

Continue

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

Continue

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. 

To see more of the discussion about this subject please see this link.

@jrfrerichs