How long can you depreciate a residential property if converted it to residential use for some years

Forum|Forum|2 years ago
October 9, 2023
1 reply
20 views

Hi community,

Client has a single-family residential property that has been rented for 4 years. In 2022, client took it back and converted to primary residential property and planned to live in there for some time.

Suppose that client would live in the house for 3 years and rented it out again afterwards. Would this 3-year personal use time be included in 27.5-year SL depreciation time? Thank you very much!

Lacerte Tax

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Best answer by TaxGuyBill

Sorry, I'm a ProSeries user, not a Lacerte user. But maybe a Lacerte user will come along and answer that for you.

T

TaxGuyBill

Level 15

The 27.5 years starts again, using the lower of (a) the Adjusted Basis and (b) the FMV.

And manually keep track of the prior depreciation for whenever it sells.

I

Ivy GSGAuthor

Level 2

Thank you!

To delete deprecation expenses regarding the rental property for 2022 I found two ways to do it in Lacerte. One is to override current depreciation/amortization (screen 22) by inputting -1; the other is to input 1=delete this year in Additional Information (scroll down screen 22).

Do you know the difference between these two methods?

T

TaxGuyBillAnswer

Level 15

Sorry, I'm a ProSeries user, not a Lacerte user. But maybe a Lacerte user will come along and answer that for you.

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