We had rental residential real estate that I have since converted usage into our primary residence. While it was a rental, we capitalized the expense of installing a new roof, and took depreciation on it while it was a rental on our sked E. In 2011 we will be replacing the roof, with no scrap value. Do we need to do a 4797 to get the roof off our books, considering it is not currently a rental? Since we converted from a rental, we have been just leaving that column of the sked E blank. At the time there was carryover passive loss, but that has long since been applied against passive gains on other rentals.
scott s. ..