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Shouldn't conversion from Rental to Primary be Easy ??

I bought a home in August 2020 and a tenant was already in place.

I did my 2020 taxes with TT and no issues.

On January 31, 2021 the tenant moved out.
My wife and I moved into the house as primary residence on March 17, 2021.

 

The questions in TT Premier regarding this event seem ambiguous.  After TT asks if I converted to primary residence (and I answer "Yes"), it asks for things like disposition date and sales price. Clearly, I did not sell the property to myself.   If I enter $0 for a sales prices, it throws a huge negative number to my 1040.  Much lower tax burden but I doubt that is correct.

 

Should I just enter a sales price equal to what I paid in 2020?  That should recapture the depreciation and be done with it.  No ?

BTW: On the rental asset summary screen, it says "Sold/Retired from business use in 2021? - NO" 

I cannot get this to change no matter what I tried.

Lastly, entries for property tax, insurance, etc. are listed as "2021".  Should I enter those costs for all 12 months or just for the one month it was rented ? 

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2 Replies
ColeenD3
Expert Alumni

Shouldn't conversion from Rental to Primary be Easy ??

Make sure that you actually clicked on converted from rental to personal and not the other way around.

 

You should not be getting sales questions. I just ran through the program and did not get that question.

Shouldn't conversion from Rental to Primary be Easy ??

Coleen;

Thank you for the quick response and guidance. My mistake was that I interpreted the conversion from rental to primary residence as a "Sale of Business Property".  Once I deleted that asset sale entry, everything (including income) seemed to be OK. 

 

thanks !

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