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Taxq-2018
New Member

Rental property converted to personal home, turbo tax keeps denying depr. and allocated to a vacation property, it is not a vacation property but now my personal residence

 
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4 Replies

Rental property converted to personal home, turbo tax keeps denying depr. and allocated to a vacation property, it is not a vacation property but now my personal residence

Unless you are selling the residence there is nothing for you to report on the tax return if you converted the property from a rental to your personal primary residence.

Are you selling the home?

Taxq-2018
New Member

Rental property converted to personal home, turbo tax keeps denying depr. and allocated to a vacation property, it is not a vacation property but now my personal residence

the property was rented 206 days, then I moved in, I should be able to get depr for part of the year 

Rental property converted to personal home, turbo tax keeps denying depr. and allocated to a vacation property, it is not a vacation property but now my personal residence

Then you indicate that you rented the property for 206 days and did NOT have any days of personal use.

Anonymous
Not applicable

Rental property converted to personal home, turbo tax keeps denying depr. and allocated to a vacation property, it is not a vacation property but now my personal residence

While converting a rental property to a residential property is as simple as just moving in, the financial implications are much more significant. Converting it from a rental to a residence removes your ability to deduct expenses from the property from your taxes. It also changes how it will be treated when you sell it. While you may gain the ability to take advantage of the personal residence capital gains shelter, converting it won't eliminate your depreciation recapture tax liability.

 

A property becomes residential property once you start living in it for more than two weeks a year or more than 10 percent of the days for which it would be available to rent. 

 

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