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Discussion Forum Index --> Tax Questions --> Sale of personal/rental property
Rookie (talk|edits) said:
| 1 March 2006
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| Client sold house. this house was his main home but he rented an upstairs unit for a number of years. i know he doesn't have to include half oF the gain since he qualifies for the ownership test.my question is if he received a 1099-s for 230000 should i put 115000 as the gross sale price?. wouldn't this send a red flag since amount won't match what the irs receives. thanks
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Deback (talk|edits) said:
| 2 March 2006
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| Show the personal 1/2 of the sale amount on Schedule D and take the home sale exclusion (for sales after May 6, 1997) by completing the Home Sale Worksheet. In ProSeries, that worksheet is listed a few entries under Sch. D in the Open Forms window.
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Solomon (talk|edits) said:
| 2 March 2006
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| The full 230,000 less depreciation taken on the rental portion is excluded. No form 4797 is required because the rental was not a separate structure. See Pub. 523.
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Solomon (talk|edits) said:
| 2 March 2006
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| Meant to say the gain - 230,000 minus cost minus depreciation is excluded. In other words, only the depreciation is NOT excluded.
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