How to report 2017 sale of real estate property that was main residence for 6 years, then rental for 10 years, then vacant for 5 years?

[tt1018]

For 2015 & 2016 no schedule E filed, but not sure how to check if property was converted to personal use.

[Coleen3 · Accepted solution]

If you did not live in the home for two out of five years as of the date of sale, you can't exclude gain. If it was vacant for 2017, you would enter it under Sale of Business Property.

Enter it in the income section.

• Less Common Business Situations
• Sale of Business Property

[tt1018]

Is depreciation allowed/taken based on the sale date or when the property became vacant?

[Coleen3]

The depreciation is only taken for the time it was rented. If while it was empty, it was still held out for rental, you can continue the depreciation. If you didn't try to rent it, it was just your second personal home.