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.

[Catherine Graham]

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.

[IRonMaN]

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

[BobKamman]

What was he storing?  Inventory and business equipment?

[Just-Lisa-Now-]

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.

[Just-Lisa-Now-]

maybe a hoarder?

[Catherine Graham]

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

[Catherine Graham]

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

[Catherine Graham]

He is a bit of a hoarder!

[BobKamman]

Has he been depreciating it for the last 17 years?

[Just-Lisa-Now-]

so he used it for storage for his real estate business? how does depreciation figure into this?

[Catherine Graham]

No.

[Just-Lisa-Now- · Accepted solution]

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.

[ljr]

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.