sale of a rental by an armed forces member

Forum|Forum|3 years ago
April 1, 2023
3 replies
37 views

Where do I enter on the asset entry worksheet that the rental was sold by a member of the armed forces? I completed the Home Sale worksheet and the sale is a loss so no use of the exclusion, but I can't link the asset entry worksheet to the home sale worksheet because of the loss. Is the only gain the depreciation they were allowed? They also sold their main home, do I do a separate home sale worksheet for the sale of that home? I just don't see anywhere it asks if they were members of the armed forces. Thanks

ProSeries Basic

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sjrcpa

Level 15

Military don't get any special treatment on the sale of a rental property. It should not be linked to the home sale worksheet. If sold at a loss there is no gain attributable to depreciation.

For sale of their main home, do they need the extra time allowed for military personnel? If not, ignore it. If yes, one of the ProSeries users should be along to answer where the input is.

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

T

TaxGuyBill

Level 15

As Susan mentioned, can you clarify why you think being a member of the armed forces affects these situations?

Y

Young-TPAuthor

Level 4

Maybe I didn't ask the question right. Do I need to complete the home sale worksheet and the asset entry worksheet when selling rental property for someone in the military. If SL depreciation was used do they report that as a capital gain and if so where is does that figure come from?

This is the exclusion for military. The second rule when selling a rental property is the military extension of the capital gains exclusion. This allows active-duty military members who are away from their property due to PCS orders to extend the 60-month period up to an additional 10 years. This means that eligible military members may exclude their capital gains as long as they occupied the primary residence for two of the previous 15 years.

sjrcpa

Level 15

Is it a rental property or a personal residence?

Is there one property sale or two?

How long were they away from their personal residence due to military orders?

I'm so confused.

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

T

Tarulad

Level 2

Did you figure out where to enter the information for a member of the armed forces? More specifically, where can I can elect the 5 year suspension?

T

TaxGuyBill

Level 15

@Tarulad wrote:

Did you figure out where to enter the information for a member of the armed forces? More specifically, where can I can elect the 5 year suspension?

I'm not aware of a need to enter it, and there is not an "election" for it. Just enter the information based on the extended five year period. So if the Home Sale Worksheet has a question that includes "five years", just treat it as "five years plus the time in Qualified Extended Duty (up to 10 additional years)".

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