I rented out a home for a couple years in a way where I just rented out 1 or 2 of the rooms in the house while I lived in the remaining room.
After that I convereted the home to personal use and lived there for 2 years.
Recently my wife and I moved, and I rented out the original home in it's entirety. While there be anything special I need to input in Turbotax to account for this scenario? Or any gotchas? I am curious how the rental depreciation works now that it is fully rented out instead of a couple rooms.
Do I start this as a brand new rental or should it continue the old rental inputted?
If you place the house back into service, you will use the lesser of the fair market value at the time of conversion to rental use or the adjusted basis and the latter will be reduced by the total amount of depreciation you previously deducted.
This makes sense. Do you know if Turbotax requests this input for me (i.e will there be questions and prompts that ask for this) or will I have to calculate the math myself and input it somewhere