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Client sold personal home he never lived or rented (used for storage) in 2020. I do not know how to put this on his return correctly.

My client sold a home that he owned for 17 years in 2020. He never rented or lived in the home. I am not sure how to report this sale. 

2003 purchase price   $  49,000
2020 Upfits                  $  66,500
2020 Sale Price           $150,000
2020 Sales Costs         $      586

Right now I have it on a form 6252. However, it is not an installment sale. I hope someone can help me.

Thank you.

 

 

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Accepted Solutions
Just-Lisa-Now-
Level 15
Level 15
Unless it was used in business or as a rental, there shouldn't be any depreciation to deal with on a personal home like that.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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12 Comments 12
IRonMaN
Level 15

Schedule D is a popular answer today for the sale of homes.


Slava Ukraini!
BobKamman
Level 15

What was he storing?  Inventory and business equipment?

Just-Lisa-Now-
Level 15
Level 15

You need Sch D, not the 6252.  This is how I would do it, I like to keep my sales price actual just in case a 1099S was issued, I want them to match.  Use the 1099B worksheet.

SELLSECONDHOM.png

 


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Just-Lisa-Now-
Level 15
Level 15
maybe a hoarder?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

This is perfect. Thank you so much. I really appreciate it.

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I do not need to report depreciation? He is a real estate professional and he is insisting that I need to.

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He is a bit of a hoarder!

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BobKamman
Level 15

Has he been depreciating it for the last 17 years?

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Just-Lisa-Now-
Level 15
Level 15
so he used it for storage for his real estate business? how does depreciation figure into this?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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No.

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Just-Lisa-Now-
Level 15
Level 15
Unless it was used in business or as a rental, there shouldn't be any depreciation to deal with on a personal home like that.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
ljr
Level 8

I would also explain that the depreciation recapture on the sale for the depreciation he never took over 17 years would decrease his basis and create a larger capital gain. Sounds like he really does not understand depreciation.

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