Selling an apartment building where owner lives in one unit

[Just-Lisa-Now-]

How does IRC121 figure into this?  

Do I need to divide the sales price by the number of units and allocate a % to her as her personal residence?

[PhoebeRoberts · Accepted solution]

You need to allocate using some reasonable method, yes. Then you have two sales.

[Just-Lisa-Now-]

thank you!

[abctax55]

Lisa...are all the units the same size?  Is hers "bigger"?   

You could also use square footage to allocate.

[Just-Lisa-Now-]

I'll ask her, she's just toying around with the idea of selling.