Home converted to rental property, qualifies for 121 exclusion & has deprec recapture. Form 4797 part 1 displays the 121 exclusion but then the deprec goes to Sch D. (wrong) For deprc recap looks like Part III of 4797 - how to enter 121 exclusion

Forum|Forum|2 years ago
March 20, 2024
2 replies
18 views

How do you get both the depreciation recapture and the section 121 exclusion?

Lacerte worked on this for an hour and sent me here. I hope someone has tamed this dragon.

thank you, Linda Parks CPA

This topic has been closed for replies.

T

TaxGuyBill

Level 15

Unfortunately, I can't help you with your question, but I wanted to say that it's good that Lacerte reports the sale and §121 exclusion on 4797. ProSeries incorrectly puts everything on 8949/Schedule D.

A

Aggiemom1948

Level 3

I did this just last week. You enter all sales information on depreciation screen 22. Scroll all the way down to Sale of Home and check the appropriate boxes. Carries to 4797 and takes the exclusion.

Are we counting days to April 16 yet?

L

Linda Parks CPAAuthor

Level 2

Hi Aggiemom,

I so appreciate your response. I'm using Screen 22. My depreciation recapture is still landing on form 4797, line 7, which then puts in on

Schedule D, line 11.

Could you possibly email me screen shots of your input.

I'd be extremely grateful, I've spent an unreasonable amount of time on this.

And yes, counting returns to be done & days, doing the math!

best,

Linda Parks

L

Linda Parks CPAAuthor

Level 2

linda@lparkscpa.com

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