Level 3

Question

How to reduce cap gain exclusion on home sale - 5 acres to home, 70 to farm land.

Forum|Forum|4 years ago
November 30, 2021
2 replies
15 views

Hi there,

I'm trying to record the sale of a primary residence plus farm land. The property was a total of 75 acres with 70 allocated to the farm and 5 acres allocated to the home.

I can't find anything that addresses these circumstances directly. The link below describes how to reduce the gain exclusion by number of days lived in the residence.

Any idea to indicate the above scenario in Lacerte?

Thanks!

Lacerte Tax

This topic has been closed for replies.

The208Accountant

Level 3

https://proconnect.intuit.com/community/federal-taxes/help/reporting-a-sale-of-home-on-an-individual-return/00/5346?ptolink=https:%2F%2Faccountants-community.intuit.com%2Farticles%2F1860712-reporting-a-sale-of-home-on-an-individual-return&src=ptoosi

Intuit Community Champion

Intuit Community Champion

Vacant land adjacent to your home can be combined with the home under the Section 121 exclusion, subject to the following conditions:

The land is adjacent to the land on which your home sits
You owned and used the vacant land as part of your home -- not for any business purpose

The208Accountant

Level 3

Would farming (crops) be considered business purposes?

Level 15

Yep

The more I know the more I don’t know.