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Level 2
posted Mar 9, 2020 9:21:35 AM

Demo a rental property and rebuild as primary residence with no intention of selling

We rented a home for 27 years, and then in 2019 we took the home out of rental service, demolished the home, and began building our primary residence on the same property with no intention of selling the home/property. The home is not yet our primary residence until we can occupy it sometime in 2020. Please help me with the steps in TurboTax for 2019. Is it as simple as converting the home from a rental to personal use, dividing the expenses for rental/personal in tax year 2019, and then keeping depreciation and cost basis records in case we do sell some day? Thank you.

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1 Replies
Expert Alumni
Mar 9, 2020 9:40:58 AM

Yes, you can indicate in the rental section that you converted the home to personal use and then divide the expenses between personal/rental.

 

Yes, keep the records of the depreciation and cost basis so if you sell the home one day you have all the information.