Sale of home used partly for business only takes business percentage of cost basis on Form 4797. Do you enter business % of sales price to force correct gain/loss?

Forum|Forum|3 years ago
August 30, 2022
3 replies
24 views

One answer I received earlier said to enter full sales price which seems correct but not sure if you have to manually adjust basis to make the gain/loss work out?

ProConnect Tax

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TaxGuyBill

Level 15

Is this a separate building from the home?

Are you entering it on a Asset Entry Worksheet for a Home Office? Or how are you trying to enter it?

Does the taxpayer qualify for the $250,000/$500,000 Exclusion?

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loristevenson373Author

Level 2

Yes they qualify for the exclusion.

It is not a separate asset.

I am doing a bulk sale on the depreciation schedules attached to form 4797. I have read the instructions several times sent earlier but if I enter full sales price the cost basis still only comes through at 9.42% of the total cost of the asset. The only way I could get it to work is to enter 9.42% of the sales price and expenses of sale which doesn't really look right either.

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loristevenson373Author

Level 2

I meant the depreciation schedules attached to form 8829 home office deduction

George4Tacks

Level 15

Carefully look through this article. https://proconnect.intuit.com/support/en-us/help-article/form-8949/reporting-sale-home-individual-return-proconnect/L8j1M7iJI_US_en_US?uid=l7gcqtz6

Answers are easy. Questions are hard!

qbteachmt

Level 15

"One answer I received earlier"

Because now you started this same issue as another new topic. The original was right here: https://proconnect.intuit.com/community/proconnect-tax-discussions/discussion/how-do-you-enter-the-sales-price-on-form-4797-for-disposition-of/00/229461

I will flag your other one so that volunteer peers that are trying to be helpful now come to this topic, so that they don't try to answer the same person on the same issue in two places.

Don't yell at us; we're volunteers

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