2506105
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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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.
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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