Residential Rental Conversion and Schedule E Worksheet

[sbbstax]

My client sold their personal residence in May of 2020 and moved into their former residential rental property in June.  I entered income and expenses on the Sched E worksheet, 173 rental days, 0 personal days, and entered the June 21 disposition date for the asset, which immediately reworked the depreciation as expected.  But when I returned to the Sched E worksheet, nothing had changed.  If nothing else, I was expecting to see a change in mortgage interest and property tax from the 1098 import, as I've seen with vacation rentals, but nothing was different.  Is this what's expected with a conversion to personal use?  Thanks in advance.

[rbynaker · Accepted solution]

In the conversion years you have to manually allocated expenses like taxes, mortgage interest, insurance, etc. between the period of rental use and the personal use.

[sbbstax]

Thank you.  That made the most sense, but I couldn't help wonder if I'd missed a check box somewhere!