rental home into personal resident

[aya]

What do i enter when client turns his rental residential home into his own home in depreciation and anywhere else?

[IRonMaN]

You stop depreciating the property and hang on to the depreciation schedule for future reference when he sells the house.

[aya]

Do I enter the date where it says Date disposed or sold or retired and that's the only thing to do for now I guess?

[IRonMaN]

In ProSeries you can enter a sold date and not enter a sales price to make it stop depreciating, but I don't know if Lacerte is as kind as ProSeries is in those situations.

[aya]

When I enter date, it shows in date sold line but I guess it does not matter.  Thank you

[aya]

Also, I entered 12/31/22 in sold/retired part in all the depreciated properties but it didn't stop depreciating for building and improvement.  Does this have any consequesnses?  This client  made his rental into his resident in 2023.  

[sjrcpa]

You can override depreciation for each asset to zero (-1).

[abctax55]

You can change the method to "99" (land, or no depreciation).

Or

Change the Form to "17" = F 4562 only.  

Or, both.   That way you'll still have the info on depreciation, and basis when/if the house is sold.

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I'm not sure entering a prior year sale date (2022)  in the current year (2023) program works.

[aya]

Thank you for tip.  This is very helpful.