REFUNDMN
Level 2

I have a client who sold the duplex (Lived in one unit and rented out the second unit). The client lived there for the last 6 years. I know the client must pay capital gains tax on the depreciation, but does the client have to pay capital gains tax on the sale of the home as well. The net profit was only $123,000

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jeffmcpa2010
Level 11

I would split the sale 1/2 on the home sale worksheet, and the other have entered in the rental asset wks on the schedule E (which will carry to 4797).

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REFUNDMN
Level 2

Thank you

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