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Stop date for depreciation on a property that was under depreciation for 2022 and until Nov 15th, 2023

Tax Prepper
Level 2

The clients had a property on their 2022 return that was depreciating Building which was the home. They moved into this property as the primary residence on November 15th 2023.

How do I enter depreciation for the property up to the date they moved in for the 2023 return in Lacerte? How do I enter a stop date for depreciation?

Shouldn't they be able to depreciate up to the date it became their primary residence. 

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1 Comment 1
Level 15

In date of sale, enter when it was removed from service as a rental.  Yes, on real property you get depreciation on the mid-month basis.

Do not enter a sales price.

Keep the depreciation schedule showing the accumulated for as long as they own the property - you may need that info down the road.

You can also maintain the asset(s) by changing the Form to 17 (F 4562 only) to the info stays with the file when you proforma - but after the return is finalized.

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