Sec 121 Exclusion for Sale of owner-occupied rental property

Forum|Forum|1 year ago
September 9, 2024
3 replies
13 views

Details:

Bought and placed into service 2017. 50% rental 50% personal residence for duration.

Lived there with spouse until 2019 when they divorced and she bought him out.

Sold March 2023.

I have attempted to link the sale to the home sale worksheet but I get the error that this is not possible for homes with less than 100% business use. I called support and was told (after much troubleshooting) that I will have to just turn error checking off and hopefully the IRS accepts it. This doesn't seem adequate to me so my question is, how do I calculate the exclusion (even if it only amounts to $125k since 50% business use) while still reporting the sale of the business property?

ProSeries Professional

This topic has been closed for replies.

Best answer by Terry53029

On the asset worksheet, just enter date of sale only. You then fill out the home sale worksheet with the deprecation info in section lV.

T

TaxGuyBill

Level 15

I first want to ask you to clarify the situation: Is this all one home (one "dwelling unit")? Or it separate "dwelling units" (separate entrances, separate kitchens, etc.)?

E

ejdtaxmanAuthor

Level 6

All one home.

T

Terry53029

Answer

Intuit Community Champion

On the asset worksheet, just enter date of sale only. You then fill out the home sale worksheet with the deprecation info in section lV.

E

ejdtaxmanAuthor

Level 6

Thanks my next Q was going to be how to account for depreciation recapture but you've solved that. Much appreciated!

BobKamman

Level 15

" they divorced and she bought him out. "

You probably don't mean that, you probably mean she got the house in the property settlement and he got something else, but it's important to be precise with language.

E

ejdtaxmanAuthor

Level 6

No, I mean she bought him out. It was not a settlement.

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