coverting rental to personal use

[alligatorob]

What is the name of your state? Florida.

We have owned a rental house for 3 years. Over that time we have taken losses every year but due to our income have not been able to deduct the losses. We now have substantial suspended losses we are carrying over. If we move into the house and stop renting it can we take the suspended losses even if our income still exceeds the upper limit to take passive real estate loss deductions? I know when you sell a house you can do this, but I am less sure what happens when you move into it.

Thanks,

Alligatorob

 

[JETX]

The process of 'recovering' previously rented property can be fairly complex and should best be done only after consulting with a qualified accountant or CPA. There are issues such as having to return the depreciation deducted during its rental period (since your home is not depreciated).