In 8/16 our college son moved into a rental we own, we are not charging him rent, his housing is our contribution to his education. Is this a conversion to personal use?

[bookworm62]

We have owned and rented this property for several yrs, so it is in my turbo tax history. If it is a conversion to personal use, I assume TT will guide me through the effects on the depreciation, etc. Is this true?

[IreneS · Accepted solution]

Yes - it is a conversion to personal use, just as if you had moved into the house.  You will apportion your total property expenses for the year between business use and personal use.  TurboTax will guide you through the process of entering the conversion.

To indicate the conversion, please follow these steps:

1. In TurboTax Self-Employed: click on the Business tab > Continue > I'll choose what to work on.
2. On the Let's gather your business info screen, in the Rental Properties and Royalties section click on the Start/Update box.  [See Screenshot 1, below.)
3. On the Income from Rentals or Royalty Property You Own click Yes.
4. On the Rental and Royalty Summary screen.  Click on the Edit box next to the property.  [Screenshot #2]
5. On the Review Your [property name] Rental Summary screen, click on the Start/Update box in the Property Profile section.  [Screenshot #3]
6. You will eventually come to a screen, Do Any of These Situations Apply to This Property?  Mark the box next to 
   
   I converted this property from a rental to personal use in 2016.  [Screenshot #4]
7. Continue through the screens entering the requested information.
8. You will be brought back to the Review Your [property name] Rental Summary screen so you can enter any income and expenses.