topic Converted a 100% rental to 50% rental/ 50% personal use in Investors & landlords

Converted a 100% rental to 50% rental/ 50% personal use

henrybarrack85 — Mon, 09 Mar 2026 08:43:31 GMT

In 2021, I moved into my rental property, which I had rented 100% and depreciated on previous year’s taxes. As of April 2021, I now occupy 50% of the property as my primary residence. How do I effectively end the 100% rental period and then divide between 50% personal use and continue to depreciate the other 50% I am still renting in Turbotax and report the rental income? @Carl

I have made no major additions or improvements in the last couple of years when I was renting the property. How do I determine the new basis for the structure for the current period of 50% / 50% use starting April 2021? Do I need to refer to the old basis amount with depreciation?

Re: Converted a 100% rental to 50% rental/ 50% personal use

Critter-3 — Wed, 09 Mar 2022 12:01:38 GMT

Since I doubt you entered the property as 2 separate assets to begin with you will now need to do so to split them up.

First take the asset out of service by converting it to personal use as of the first of the year. Then take 1/2 of the basis that was being depreciated and enter each side as a new asset with the same start date you already used and 1/2 of the prior year depreciation.

Then convert that new asset you now live in to personal use as of the date of conversion.

Re: Converted a 100% rental to 50% rental/ 50% personal use

Carl — Wed, 09 Mar 2022 13:06:02 GMT

That's simplicity personified. Just be aware that when all done, you will have THREE rental properties showing on SCH E.

1) The one you converted to personal use on 1/1/2021

2) The half that was still a rental for all of 2021

3) The half that was not a rental for all of 2021 because you moved into it at some point in the tax year.

Re: Converted a 100% rental to 50% rental/ 50% personal use

Critter-3 — Wed, 09 Mar 2022 13:12:01 GMT

3 are not needed ... you can have just 2 ... you can have multiple assets to the one side rented all year.