Converting rental to my primary residence. I was depreciating prior remodel costs. How do i properly "dispose" of those when converting it back to my primary?

[tyler-g-haney]

rental was through end of june, primary july 1 on.

[MichaelL1]

The rental just stops on June 30th.  

The disposal does not take place until home is sold.  So could be 15 or 20 years down the road, you may have depreciation to recapture.  

I know it seems a little strange, but this is how it works.  

If the home actually gets inherited, then the sale never gets reported.  

In the Rental Profile area, under the screen, "Do Any of These Situations Apply to This Property?" you will answer converted this property from rental to personal use in 2016.  

Turbo Tax then will help explain what you need to do.

Depreciation and expenses will only be for the first half of the year.  

[tyler-g-haney]

so do i need to do anything to the depreciation items under 'your property assets'?  should i change the percentage of time used as an asset for business to the percentage of year?  just feel like they are currently being written off as depreciation for the full year under my rental when the rental was only a half year.

[MichaelL1]

I posted additional information in question to help you with the comment.  Yes, under property assets you will need to answer taken out of service.

[MichaelL1]

yes, make sure all are accounted for that were on depreciation schedule

[tyler-g-haney]

also looks like you need to go to 'your property assets' and select edit on each item... then hit continue and answer 'did you sotp using this asset in 2016?' (converted to personal use ==> yes), then enter the date of disposition, hit continue, 'special handling required? (converted to 100% personal use ==> yes), then continue.