Sale of Mixed Use Rental / Vacation Home
Taxpayer rented out their vacation home about 33% of the year then sold it at the end of the year for a gain. How do I report this? 33% business use on the asset entry sheet along with 33% of the sale price and expenses and let that flow to 4797 along with the depreciation recapture? Then the other 67% (Proceeds and selling expenses) directly on Schedule D?
And does it matter if it wasn't a 33% split the previous tax years?
