How do I convert a property to personal use and back?
A rental period is the span of time a property was actually rented out. Months outside a rental period are personal use, so their income, expenses and depreciation stay off the budget, the dashboard, the Annual Report and Schedule E.
Open the property, choose the Details tab and find the Rental periods card. With no periods on record the card shows the date we assumed the property became a rental, from the first lease or the closing date, and asks you to confirm it. Confirm or change that date and press Confirm.
To convert a rental to your own residence, press Convert to personal use on the open period and enter the first day of personal use. From that date no rental income, expenses or depreciation are counted until the property is converted back.
To convert back to a rental, press Convert back to rental, enter the first day it is a rental again, and review the Value at conversion. The value is prefilled from the current market estimate, is clearly marked as an estimate, and is never used until you save. Enter your own figure if you have an appraisal.
Why the value matters: the IRS depreciates a property converted from personal use on the lesser of your cost basis and its fair market value on the conversion date. If no value is on record the tax report keeps your cost basis and shows an amber prompt asking you to confirm the value at conversion. A property converted back to a rental after a personal-use gap starts a new 27.5 year depreciation schedule on that basis, reduced by the depreciation already taken. The Tax Reports page shows the basis used for each property, the personal-use months in the period, and notes to confirm with your CPA. Periods cannot overlap and only one period can be open at a time; the app refuses a date that would overlap and explains why. Deleting a period makes its months personal use again and removes any value at conversion recorded on it.