DEPRECIATION RECAPTURE SCH E

Forum|Forum|4 years ago
April 12, 2022
5 replies
24 views

Hi,

Client rented his primary home for 3 yrs (he and family lived there for 2.5 yrs). How do i recapture the depreciation?

GK

ProSeries Professional

This topic has been closed for replies.

Best answer by TaxGuyBill

ProSeries doesn't actually report the sale correctly (it uses Form 8949 rather than 4797). But if you do it the way that ProSeries wants you to do it, on the Asset Entry Worksheet for the rental house, go down to the disposition section and "link" it to the Home Sale Worksheet. Then enter the sales information on the Home Sale Worksheet.

T

TaxGuyBill

Was the house sold?

Were the 2.5 years of personal use before the rental? After the rental? During the rental?

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

G

gk77_2Author

Level 6

house sold in 2021, they were lived 2.5 ys before rental. yes they are eligible for home exclusion

T

TaxGuyBillAnswer

ProSeries doesn't actually report the sale correctly (it uses Form 8949 rather than 4797). But if you do it the way that ProSeries wants you to do it, on the Asset Entry Worksheet for the rental house, go down to the disposition section and "link" it to the Home Sale Worksheet. Then enter the sales information on the Home Sale Worksheet.

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