My rental property was a rental through 12/31 2019, I converted it to a second home at the beginning of 2020.
1. Is there a data entry for the date converted? If so what date do I select 12/31/19 (last rental day) or 1/1/20 first day of second home?
2,. How best to enter the conversion to personal use? - (a) in the rental property section enter zero days rented and zero days personal use only, and/or (b) check the "i didnt rent or try to rent this all year" box. just item (b) seems to delete all reference to the property for 2020 return...which is fine except for question 3 below.
3. The propertv includes an asset that used the special depreciation allowance and it will not have reached its end of life as of the conversion. I know the depreciation impact on the basis/gain will be dealt with at the time I ever dispose of the property, but I have read conflicting info on reporting the special depreciation effect this year. The TT Premier help on converting assets says "...there is no gain to report. However you must report the section 179 recapture this year." Is the reporting the recapture this year referring to the recalculation of the depreciation as MACRS straightline over its life time with the difference between it and the accumulated depreciation for the asset being considered income? If so how does TT calculate this...especially if the rental property info is deleted since I did not rent the property all year (selecting item 1b above)
Thanks for your help.
