How to stop depreceiation on schedule E

[Tax Prep by Deb]

I have a client who has a mobile home that they have rented out for many years. 2012 because of health issues they decided to not rent it out. It was not rented for all of 2012 nor do I believe they tried to rent it out.

I do believe the intent is to continue renting it but not right now. ATX keeps inputting depreciation and when I try to change the usage to 0% it reverts back to 100%.

I would just convert it to personal use but it's still going to figure some depreciation.

Anybody know what I may be doing wrong?

Deb!

[michaelmars]

change business use on the asset entry screen to -0-

[Jim Oh Bkkr]

ATX keeps inputting depreciation and when I try to change the usage to 0% it reverts back to 100%.

I assume this is another "2013 enhancement".

I ended up duplicating the return, (One for filing and one for next year's rollover.), and deleting the asset for filing 2012.

Jim

[Tax Prep by Deb]

I hadn't thought about that but that would work. I don't want to lose my history in case next year it is rented again, but it won't let me change the use to 0 in the asset entry screen as previously suggested. I try that and it changes back to 100%

[Jim Oh Bkkr]

... it changes back to 100%

I tried 6 times, before I used my "typical" work around. Just be sure to rename the GOOD return "w/2013 rollover", or similar wording so you don't rollover the wrong one next year.

Jim

[Max W]

Try inputting 0.01 - this should round off to Zero.

[Tax Prep by Deb]

Try inputting 0.01 - this should round off to Zero.

Tried that, but it changes back to 100%

[MsTabbyKats]

Once upon a time I had a client who had 2 apts next to each other. He lived in one. He rented out the other. Then he had a child and decided to break thru the wall...and live in both.

I called IRS and asked your very question...and the rep told me not to bother with the Schedule E because he wasn't renting out anymore.

So...I just eliminated the Schedule E.

[JMovichEA]

On the dispositions tab in the Fixed Assets, have you tried selecting "convert to personal use"?

[joanmcq]

After you change to 0% , SAVE! Then the usage change will stick.

[Terry D EA]

<<<I called IRS and asked your very question...and the rep told me not to bother with the Schedule E because he wasn't renting out anymore.

So...I just eliminated the Schedule E.>>>

Hmmm, hope there were good notes kept here. Changing the disposition is always the best and proper way.

[kcjenkins]

Plus while that might be OK for a case where they physically changed it into one personal use unit, in a case where they just locked it up and they may well rent it again, you don't want to take it out, you just want to suspend it.

[Tax Prep by Deb]

After you change to 0% , SAVE! Then the usage change will stick.

I tried that it doesn't work for me. Nothing I do makes it stay at 0. I can get it down to 1% but not 0%

[Tax Prep by Deb]

On the dispositions tab in the Fixed Assets, have you tried selecting "convert to personal use"?

I could do that, but I have my preferences set to remove assets when disposed of and if I change it to personal use, I'm afraid next year my asset history will be gone.

[JMovichEA]

I could do that, but I have my preferences set to remove assets when disposed of and if I change it to personal use, I'm afraid next year my asset history will be gone.

I don't know how ATX handles an asset converted to personal. I'd duplicate a 2011 return, convert an asset and then rollover in 2012 and see if it's still there. (and hope 2013 works the same way)

[TAXMAN]

What if you changed it to non-depreciable:other sometimes this works. It will carry over to next year. Just thinking.