I had a rental property for several years but converted it to personal use in 2022. For tax year 2022, I checked the following box in TT's rental property section: "I converted this property from a rental to personal use in 2022." But when I went to file for tax year 2023, TT said I still couldn't delete the rental property information and it still asks me all the same "property profile" questions until the end. Then it finally understands that this was not a rental property at all in 2023. So then TT said "Since this property was not a rental at all in 2023, you should delete it as a rental. Make sure to keep your complete return, including the Depreciation Report for this property, from 2022 (or the last year this property was used as a rental). You'll need that information when you sell the property or convert it back to a rental." Then TT started a new entry for a new rental property. I was able to navigate back from that new entry to the summary of the rental property section in TT. There in the rental property section summary, I could see that my previous rental property was no longer listed. Instead, a new blank (untitled) real estate property entry was listed. I clicked delete for the blank real estate property, TT said "Delete Confirmation...The following form(s) are about to be deleted. Are you sure you want to delete them? Schedule E Wks (Hidden Sch E)." Should I click "Yes"?
(It seems like the clear answer to this question is "yes", but I just wanted to confirm given how confusing TT is with this and since we are supposed to preserve info on this property from returns in previous years.)
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Yes, you can and should answer yes. Keep a copy of all worksheets and forms for your 2022 tax return as noted because they will be relevant until the property is sold. There is no need to keep it in your tax file while it's being used for personal purposes.
Yes, you can and should answer yes. Keep a copy of all worksheets and forms for your 2022 tax return as noted because they will be relevant until the property is sold. There is no need to keep it in your tax file while it's being used for personal purposes.
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