Converting rental property to personal use

YKubis

Hello lovely community,

I have a new client who has a rental property (reported schedule E for 2 years), and in 2024 decided to convert it into vacation home (personal use). How should I treat this conversion? What will happen to the building depreciation?

Thanks

YK

IRonMaN

Print off the depreciation schedules that you have for future reference in the event he sells it at some point and then delete the schedule E and related depreciation schedules.

Slava Ukraini!

YKubis

Thanks for the response. I though there will be depreciation recapture with this conversion, no?

IRonMaN

Only when they actually sell it.

Slava Ukraini!