I have a client that has been farming for 28 years. They retired and sold the farm and all the equipment in 2022. They had NO farm activity in 2022. Schedule F would be 0.
1. How do I report the sale in Proconnect?
2. Do I do a sold disposition for every asset?
3. My client thinks that they will not own any Capital Gains since they have lived there for so long. Is this correct and if so, how do I report the sale then?
First, you need the sale price allocation. How much was paid for the equipment?
The portion of the sale allocated to the personal residence should qualify the 121 250K/500K exclusion. Gain to the extent of depreciation is taxable.
The gain on the sale of the probably fully depreciated equipment is taxable.
You're welcome.
You have clicked a link to a site outside of the Intuit Accountants Community. By clicking "Continue", you will leave the community and be taken to that site instead.