Inherited a house then rented it out then sold it do I report as house or business asset sale?
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No exclusion, but since the step up probably wiped out most or all of the gain, then NBD.
Schedule D
So are you saying it doesn't matter if I use home sale or disposition of asset as long as it ends up on Schedule D?
At the time of sale was it a rental?
They allowed a relative to live in the house for a few months. He paid rent. Moved out in April when his house was built, but the inherited house wasn't sold until July.....they did not plan on having a rental and did not try to rent it after the relative moved out.
You cant use the HomeSale worksheet, that's for principal residence (Main Home) only.
Asset placed in service and removed in the same year, so no depreciation. Claim the rental income and sell it on schedule D as the others have said, with the step up in basis.
No exclusion, but since the step up probably wiped out most or all of the gain, then NBD.
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