Rental property becomes residence

[ewilkinson]

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!

[Burke]

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.

[ewilkinson]

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.

[ATSMAN]

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.