farm/home

[MGC94]

how to report sale of farm and main home sale attached. what form for farm

[dd4vols]

Several issues here...

Is it a real farm...not just a little cottage farm with minimal assets?

If so, you might get by with including it all on the Sale of Personal residence, if the other factors are in line, like 2out of last 5 years, etc. Having separate deeds for the purchase of parcels, could be a problem, but not always will be.

If it's a real farm, and it has had depreciable assets (see previous Sch F), then you will report the land part of the farm sale on Sch D, and the depreciable assets part on Form 4797, where you have to recapture the depreciation previously taken.  This will entail allocating part of the farm sale to each of the depreciable assets included in the sale..  

And if you are lucky, it won't be an installment sale, and you won't have to get form 6252 involved.

good luck

[MGC94]

What if I report the house and farm on 4797? as it is a loss. I can make it wash for just $0. Only 1 thing deprecated ever on the farm for $7,950 a tractor in 2010. 

[dd4vols]

there is NO loss for the sale of a personal residence.

[MGC94]

I did not put it in a loss. I left it at a zero. Can I just report the whole thing there without even using the main home sale exclusion? 

[dd4vols]

you can put the part of the sale applicable to the "one depreciable asset" on the F4797. You can't put the personal residence on a 4797. You can't just make up rules for convenience or 'to make things wash'  You might consider withdrawing from this tax engagement. And I'm not being mean,  but I am being serious.  The name at the top of that form clearly states 'SALES OF BUSINESS PROPERTY'

[MGC94]

The minimal income producing property is with the main house. There is not 2 property taxes... it is all together. There is no way to say what % is for the farm and what % is for the house 

[MGC94]

They now said 30% and 70% 

[MGC94]

30% farm and 70% main home