Converted part of the rental to personal use in 2024

[EFran]

Hello, in January 2024, my son, who is also on the property title moved to the main house of our rental house! We rented the main house and the basement separately since 2022. I have manually entered 1/3 of all expenses on Schedule E, but I am unable to edit the property depreciation to only show 1/3! Are there any other tax consequences that I need to know? 

Thank you in advance for your assistance! 

[KrisD15]

The easiest way is to end that rental. Select that it was "Converted to personal use".

Enter the basement rental as new. 

Use the adjusted basis for the new basement rental (subtract the depreciation taken for that portion) as the new basis.

NOTE: You will need to account for ALL depreciation once sold, so the depreciation for the original rental needs to be added to the depreciation taken on this new basement rental. 

TurboTax won't know this when you sell, you will need to keep records.  

[EFran]

Thank you KrisD! I appreciate it!