Level 3

Question

Sale of primary residence in 2024 that was a rental for 6 years??

Forum|Forum|1 year ago
April 18, 2025
2 replies
10 views

Hello,

I have a client that purchased there property in 2009 lived in it until 2011 and went away for 6 years and turned it to a rental, moved back into it in 2017 and sold it in 2024. I was not preparing the return initially and have no depreciation schedule. I do have a copy of their SCH E's for those 6 years showing the depreciation. Not sure how to add in proseries the sale. I need to get the depreciation recapture, but also need to show as a sale of primary residence. Doesn't seem to work as sale on primary home worksheet. Any input is appreciated.

Thanks,

Ray Burts, EA

ProSeries Professional

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

I havent had one of these in a long time, but I think you enter that prior depreciation on Line 10 and Line A1 of the Adjusted Basis of Home Sold Worksheet accessible between lines 5 and 6 on the Home Sale Worksheet.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

George4Tacks

Level 15

https://accountants.intuit.com/support/en-us/help-article/form-8949/entering-home-sale-exclusion-proseries/L4yUjCVgv_US_en_US?uid=m9nm7rbf

What if there is depreciation on the home being sold?

If the property was depreciated on an Asset Entry Worksheet, you can link the asset to the Home Sale Worksheet. This will transfer the depreciation to the Home Sale Worksheet. This will also keep the adjusted basis calculation on the Adjusted Basis of Home Sold Worksheet from transferring to the Home Sale Worksheet.

If the property wasn't linked to an Asset Entry Worksheet, go to the Part IV - Exclusion and Taxable Gain section of the Home Sale Worksheet and enter any Depreciation allowed or allowable on the property for periods after May 6, 1997.

Homes using for business purposes or rental properties

If the client was entitled to take depreciation deductions because they used the home for business purposes or as rental property, enter any Depreciation allowed or allowable on the property for periods after May 6, 1997 under Part IV - Exclusion and Taxable Gain. This portion of the gain can't be excluded. You also need to enter any AMT depreciation allowed/allowable on the property after 5/6/1997, under the Alternative Minimum Tax Calculation section.

If depreciation has been claimed on this property and the depreciation for regular tax is different from the depreciation for the Alternative Minimum Tax, use the Adjusted Basis of Home Sold Worksheet to calculate the basis of the home.

Answers are easy. Questions are hard!

R

R B TaxAuthor

Level 3

Thanks!!

T

TaxGuyBill

Level 15

As others noted, the Home Sale Worksheet has a place to enter the depreciation and it should calculate correctly.

Don't forget that this home has "Nonqualified Use", so be sure to fill out that section of the Home Sale Worksheet that asks for ownership days, nonqualified days (rental) or qualified days, etc..

R

R B TaxAuthor

Level 3

Thanks!!!

Homes using for business purposes or rental properties

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