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sdb2
Level 1

TT not allowing me to deduct depreciation for property changed from personal use to rental in middle of year

In schedule E worksheet some expenses and in particular depreciation are showing up under (d) Vacation Home Loss Limitation even though property type is 1 single family residence and not vacation. I understand that I must deduct the depreciation but it is not transfering to schedule E. how do I fix this. 

 

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Accepted Solutions
sdb2
Level 1

TT not allowing me to deduct depreciation for property changed from personal use to rental in middle of year

Thanks.

I was under the impression that TT needed the personal days to prorate the property taxes ect. but appears that kicks it over to vacation or mixed use......  so zero works, thanks.  I will need to prorate property taxes manually and then make sure I claim personal part of property tax ect. 

By the way, this is all in TT 2019 downloaded version to fix my 2019 taxes as that was the year I placed in service. 

Thanks again.

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3 Replies
ColeenD3
Expert Alumni

TT not allowing me to deduct depreciation for property changed from personal use to rental in middle of year

You are entering it as a vacation home, when it isn't. It is a conversion from personal to rental. You are probably better off deleting the whole thing and starting from scratch.

 

When you get to screen #1 below, say it was a conversion. There are no personal days. Once it was business property, it ceased to be personal property.

 

When you get to the second one below, say single family.

 

 

 

 

Carl
Level 15

TT not allowing me to deduct depreciation for property changed from personal use to rental in middle of year

More than likely, you are also incorrectly reporting a number of "personal use days" of more than zero, when your day's of pursonal use is "in fact" zero. The below information provides a bit more clarity that the program does.

Rental Property Dates & Numbers That Matter.

Date of Conversion - If this was your primary residence or 2nd home before, then this date is the day AFTER you moved out, or the date you decided to lease the property – whichever is later.
In Service Date - This is the date a renter "could" have moved in. Usually, this date is the day you put the FOR RENT sign in the front yard.
Number of days Rented - the day count for this starts from the first day a renter "could" have moved in. That should be your "in service" date if you were asked for that. Vacant periods between renters count also PROVIDED you did not live in the house for one single day for any type of personal pleasure use during said period of vacancy.
Days of Personal Use - This number will be a big fat ZERO. Read the screen. It's asking for the number of days you lived in the property AFTER you converted it to a rental. I seriously doubt (though it is possible) that you lived in the house (or space, if renting a part of your home) as your primary residence, 2nd home, or any other personal use reasons after you converted it to a rental.
Business Use Percentage. 100%. I'll put that in words so there's no doubt I didn't make a typo here. One Hundred Percent. After you converted this property or space to rental use, it was one hundred percent business use. What you used it for prior to the date of conversion doesn't count.

sdb2
Level 1

TT not allowing me to deduct depreciation for property changed from personal use to rental in middle of year

Thanks.

I was under the impression that TT needed the personal days to prorate the property taxes ect. but appears that kicks it over to vacation or mixed use......  so zero works, thanks.  I will need to prorate property taxes manually and then make sure I claim personal part of property tax ect. 

By the way, this is all in TT 2019 downloaded version to fix my 2019 taxes as that was the year I placed in service. 

Thanks again.

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