Report sales of primary home once used one year as rental had depreciation

Forum|Forum|3 years ago
April 9, 2023
2 replies
10 views

Hi,

I have a client purchased home in 2018 at $560000, used as rental for about one year. Reported on Sch E and depreciated for 2018-2019 tax year

Then she lived up till middle of 2022 due to job relocation.

She sold the home at $570000 (paid commission ($28500).

My question is how to spilit the sales between rental (form 4797) and sales of home (Schd)?

Even thought it is loss,

ProConnect Tax

This topic has been closed for replies.

sjrcpa

Level 15

Don't split it. The home sale worksheet should have a place to enter Depreciation

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

S

skyworksAuthor

Level 5

Hi sjrcpa,

How do you access the home sale worksheet ?

I used the asset quick entry; Depreciation disposition.

Should I select Property Code 2 - Sale by individual personal use of property?

thanks!

JMP

Level 3

Check out this article: https://proconnect.intuit.com/support/en-us/help-article/form-8949/reporting-sale-home-individual-return-proconnect/L8j1M7iJI_US_en_US?uid=lg9vizdo

If there is no existing depreciation schedule, the article explains how to enter the sale of home via the Schedule D screens.

If there is a depreciation schedule, the article explains how to enter the sale from the disposition screen:

S

skyworksAuthor

Level 5

Hi JMP,

Thanks, I was able to follow the below instruction.

But the form 4797 was not generated due to the sales is loss.

I purposely added another $5k on top of the sales receipts so the 4797 showed, I can see 4797 Part I box (e) the depreciation allowed or allowable since acquisition populated with the depreciation taken.

Thanks!

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