pacoford
Level 4
05-13-2021
10:47 AM
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My client had a rental property which was depreciated for a few years. August 2020 he sold his principal residence and moved into rental property as his new principal residence. How do I remove property from depreciation schedule?
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Just-Lisa-Now-
Level 15
05-13-2021
02:05 PM
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only input a date, no zero
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♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Just-Lisa-Now-
Level 15
05-13-2021
11:58 AM
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You enter the date it was taken out of service as a rental in the disposal section of the asset entry worksheet. Do not enter a sales price, just put the date. Then print out the depreciation details sheet for when the property ever sells, so you can recapture the deprecation taken while a rental.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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pacoford
Level 4
05-13-2021
01:45 PM
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Thank you, I had followed the procedure as you advised but I am showing a substantial loss. Is that correct? Should I do the same with land?
Just-Lisa-Now-
Level 15
05-13-2021
01:48 PM
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if all you input was a date, you shouldnt show any gains or losses, nothing was sold.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
pacoford
Level 4
05-13-2021
01:53 PM
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I think I figured it out...I entered 0 for sales price and the line should be blank, correct?
Just-Lisa-Now-
Level 15
05-13-2021
02:05 PM
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only input a date, no zero
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
pacoford
Level 4
05-13-2021
04:08 PM
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Thank you again!!! The numbers look right.