Carl
Level 15

Investors & landlords

This is a duplicate post that does not contain needed information already provided in the post at https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/property-rented-2016-...

If you rented to your child paid below FMRV, and/or if you claimed the child as a dependent, then the property is considered personal use and treated as a 2nd home. So it would not qualify for a 1031 exchange.

If the property qualifies as a rental for 2020 and on (which is possible, but doubtful), you'll have to first check your 2019 tax return to see if you converted it to personal use. If you did, then you'll need to amend the 2019 return to undo the conversion.

Then you'll need to amend the 2020 and 2021 tax return to report the rental income/expenses on SCH E for each year. When you amend those two years, you will 'NOT" be able to import the depreciation history or the PAL Carry overs, and will have to enter them manually.

Once you have amended all the returns in chronological order, you can then start your 2022 tax return and make absolutely certain you import from the "AMENDED" 2021 tax return, so the depreciation history and PAL carry overs are imported.