Depreciated rental property becomes client's principal residence

[pacoford]

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?

[Just-Lisa-Now-]

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.

[pacoford]

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-]

if all you input was a date, you shouldnt show any gains or losses, nothing was sold.

[pacoford]

I think I figured it out...I entered 0 for sales price and the line should be blank, correct?

[Just-Lisa-Now- · Accepted solution]

only input a date, no zero

[pacoford]

Thank you again!!! The numbers look right.