Your property assets (conversion from home to rental)

[lameri]

Hello,

If  property is converted to a rental in the middle of the year, I assume it gets listed only once (as a rental) in the "Your property assets," correct? I mean at 

• wages and income > schedule E > review your rental info > update property > update assets and depreciation > "summary":

Thank you!!

[Critter-3]

Yes ... you only enter items once however since you converted mid year then the interest & RE taxes must be properly prorated between the Sch A and the Sch E ... follow the interview screens carefully or do the proration yourself.

FYI ****  once you convert the property your personal use is ZERO ... entering in any personal days will mess you up badly ... again read the screens carefully.  

[Carl]

If  property is converted to a rental in the middle of the year, I assume it gets listed only once (as a rental) in the "Your property assets," correct?

yes. Generally, the absolute only thing you see in the Assets/Depreciation section is the property itself, and that's pretty much it. Let me run through a possible scenario for you.

2010 - You purchase the home as your primary residence for $100,000.

2015 - You put a new roof on the house for $15,000

2020 - You move out of the house and convert it to a rental. your cost basis in the property is $115,000. Using your 2020 property tax bill you do the math and figure that 30% of your tax basis (not cost basis) is allocated to the land. So 30% of $115,000 is $34,500. When entering the asset in TurboTax you will enter your total cost basis of $115,000 where it asks for that, and enter $34,500 where it asks for the cost of land. The program (not you) will do the math and assign the difference of $80,500 to the structure and that's the amount that will be depreciated over the next 27.5 years.