CharR
Level 1

My client did a 1031 exchange for rental property. They sold the rental in CA and bought a rental in AZ. They rented the property from 05/22 to 11/23. In January 2024 they took possession and it became their primary residence. When preparing their 2024 form 1040, there was no need for schedule E due to no rental income, but what do I do about the depreciation that is still calculating. Do I go into each asset and put the date in somewhere showing it converted back to personal residence?

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