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Rental property becomes residence

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    Rental property becomes residence

    My taxpayer rented her home for 2 years - she has moved back into the home.
    Do I report this on current year tax return or do I only report the business use
    when she sells the home?

    Thank you!

    #2
    You would report it as rental property in 2016 only for the period of time it was actually rented. There might be a box to check in your software to indicate it was converted to personal use as of a certain date - otherwise there is nothing to report until such time as she sells the property.

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      #3
      Originally posted by Burke View Post
      You would report it as rental property in 2016 only for the period of time it was actually rented. There might be a box to check in your software to indicate it was converted to personal use as of a certain date - otherwise there is nothing to report until such time as she sells the property.
      Thank you! You confirmed what I thought was proper.

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        #4
        Correct and make sure the depreciation stops when rental business ends. I have seen taxpayer records where depreciation continued while it was used as a personal residence.
        Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

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