Form 8824 - entering part home and part business

Forum|Forum|3 years ago
October 15, 2022
1 reply
8 views

I am trying to generate a Form 8824, where the property was partly used as a home and partly used for business. All of the gain is showing as recognized versus part recognized and part deferred. Any tips on entering these, please let me know!

ProConnect Tax

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George4Tacks

Level 15

I don't believe you can. If it was a personal residence, you can't do a IRC 1031.

Sounds like you have a sale of home, possibly with some recovery of depreciation.

Possible help articles are shown in this https://proconnect.intuit.com/support/en-us/help-article/form-8949/reporting-sale-home-individual-return-proconnect/L8j1M7iJI_US_en_US?uid=l9akfvnk

Answers are easy. Questions are hard!

T

TaxGuyBill

Level 15

If there was business use in the personal residence (both the old and the new), the business portion can qualify for a 1031 exchange (although because the business portion is often a small percentage, the fees are often not worth doing a 1031 exchange).

As for the original question, did you manually do the math to check if there is any that should be deferring? Sometimes things like receiving 'boot' or the cost of the new home may reduce or eliminate the deferred amounts.

K

kerry-beingfitfiAuthor

Level 2

Thank you for the reply. It was a 2-family house (from 2002) and a QI was used to do an exchange for the 35% business portion $525k. I have all the math correct on a spreadsheet, just can't get it to flow correctly without separating into 2 Form 8824s. She traded up to a property with FMV $630k, with an equal loan amount, so she gave boot. Per the IRS instructions for Form 8824 with part home and part business use, it states to complete separate 8824 worksheets for each part, as there are different steps to take than usual, then combine amounts on 1 Form 8824. But I might just have to settle for the 2 at this point, as long as it is reporting correctly. But any other tips would be appreciated!

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