Question
Home Sale/Farm Sale/Income Producing Property/Home Sale Exclusion
My clients sold home with farm for 565.000 purchased it for 425000 in 2004 they qualify for 500,000 for exclusion however is the farm consider income producing property where I can write off improvements as well as closing cost. The income is nominal probably about 1000 last year. The Improvements for the sale of the barn were 106000. Should I just write the improvements off as a loss on the farm and transfer that amount from sch F to the 1040. the client earns close to 500,000 per year.
Thanks
cc
