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Residential Rental Conversion and Schedule E Worksheet

sbbstax
Level 1

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.

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Accepted Solutions
rbynaker
Level 13

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.

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2 Comments 2
rbynaker
Level 13

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
Level 1

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

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