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.

[YKubis]

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

[IRonMaN]

Only when they actually sell it.