USA Rental to Personal Residence and Back

[bennettjus]

Scenario:
I placed a property in rental from 2007 to Dec 31, 2011. On my schedule E, I had a an Overall loss of $21,706.

In January of 2012, I converted the property to personal use.

On July 1, 2013, I converted the property back to rental.

Challenge:
My question is, what do I do with the "Loss" from the previous rental, and does it have an impact on my current 2013 taxes (ie do I place this in "Prior Year unallowed loss"?

Thanks in advance!

 

[kirby]

You may have been able to offset the 2011 loss against 2012 income had you continued to rent the property and not made it personal use. The"may" part gets determined partially by whether this was a passive or active activity for you. And the "may" part is also moot because what you did do was make the property into personal use, Anyway, all that is a lot of detail and best handled by you going to a qualified tax person to help you actually PLAN your next moves.

 

[bennettjus]

Thanks Kirby.

I have been in a carryover situation since 2007. All properties I have are being carried year to year, and 2012 was no exception.

This was a passive loss activity. I am really looking for an answer on forums instead of another $1500 tax preparation bill; since this is really the only the outlier I have to finish up.

 

[tmdl1968]

Need help with this problem? There are some great accountancy videos here: Search For
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[bklynboy]

Need help with this problem? There are some great accountancy videos here: Search For
SFI Training Videos on You Tube

It wasnt an accounting question. Please read the posts instead of just spamming.