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Clients have a property that was a vacation/rental for the first 2 yrs owned. Depreciation carrryovers were created due to income limitation. For 2007, clients decided to not rent this year & are using 100% personally. This property may or may not ever be a rental again.

The only item on Sch E is the "Vacation Home Carryover." I'm not sure if it's best to mark each asset as "converted to personal" or indicate business use % as 0%???

Should I file the Sch E with the return showing zero rental & the carryover?

If it's never rented again, what happens to the c/o? Is it just lost?

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