expenses for rental converted to personal property

[lilli2]

Hi, I converted a rental property to my primary residence part-way through the year. TurboTax asks me to enter my expenses and capital improvements for the whole year. The algorithm counts 100% of certain categories like management fees and prorates other categories like repairs, cleaning and maintenance.

I did a lot of work after the conversion, but the wear happened during the rental years - for example, I had to repaint and replace the fence, and the landscaping that the tenants were supposed to help maintain was in a terrible condition.  Can I claim a pro-rated portion of these expenses that occurred after I stopped renting, when I was living in the house? Because that's what the Turbotax algorithm does. 

I don't think I can claim them -- but if I enter only the expenses incurred during the rental period, TT goes ahead and lobs off 2/3 of my true landlord business expenses because I converted the property 1/3 of the way through the year.  

[tagteam]

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@lilli2 wrote:

.....if I enter only the expenses incurred during the rental period, TT goes ahead and lobs off 2/3 of my true landlord business expenses because I converted the property 1/3 of the way through the year.  

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I suggest that you switch to one of the desktop versions, if at all possible, because you need Forms Mode for this scenario. On one of the worksheets, you can change the percentage to reflect the fact that the expenses occurred during the rental period.

[lilli2]

Hi there -- thank you for answering but -- wow, wow, wow, that would be a major, major inconvenience, because my entire complicated return is completely done on TT online version. It would take hours and hours to recreate it and it is so complicated, chances are that some small detail could easily be missed and the numbers would come out differently.

Wow, that is a major headache and a nightmare. 😑

Plus, I would have to pay for the software twice, because the online version is not capable!

[VolvoGirl]

You don't have to start over in the Desktop program.  You can move your online return to Desktop.

You can move your Online file to the Desktop program and continue without paying for Online or needing to reenter your info.  If you already paid for the Online version you can ask them for the Desktop program. And you can buy a lower version Desktop program.  All the Desktop programs have the same forms.  You just get more help and guidance in the higher versions.

To continue in the desktop version see this…….

https://ttlc.intuit.com/community/choosing-a-product/help/how-do-i-switch-from-turbotax-online-to-th...

Download the .tax2022 file for free

How do I save my TurboTax Online return as a tax data file?

After you get the program installed the first thing to do before you open your tax return .tax file is to update the program and install any state programs you had. Then open your file. So you first might need to start a fake return to be able to download the state program (go to FILE - NEW).  Just enter some basic personal info like your name and address then click on the State tab at the top and it should ask if you want to download the state program.

You can buy the CD/Download here or in stores.  You need a full Windows or Mac computer to install it.

https://turbotax.intuit.com/personal-taxes/cd-download

[lilli2]

Thanks again, I really appreciate the detailed instructions.  I sure hope I don't have to jump through all those hoops. I also really like having my info online, not on my desktop. 

It is tempting to enter numbers into Turbotax that would fool the error-creating pro-rating algorithm to come up with the correct numbers. <<sigh>>

[Critter-3 · Accepted solution]

The trick in the Online program is to indicate the asset was converted to personal use to stop the depreciation and in the expenses section you do your own prorations & enter ZERO personal use days. 

[lilli2 · Accepted solution]

Ah! Thank you! I will try that!!