Details:
Bought and placed into service 2017. 50% rental 50% personal residence for duration.
Lived there with spouse until 2019 when they divorced and she bought him out.
Sold March 2023.
I have attempted to link the sale to the home sale worksheet but I get the error that this is not possible for homes with less than 100% business use. I called support and was told (after much troubleshooting) that I will have to just turn error checking off and hopefully the IRS accepts it. This doesn't seem adequate to me so my question is, how do I calculate the exclusion (even if it only amounts to $125k since 50% business use) while still reporting the sale of the business property?
Best Answer Click here
On the asset worksheet, just enter date of sale only. You then fill out the home sale worksheet with the deprecation info in section lV.
I first want to ask you to clarify the situation: Is this all one home (one "dwelling unit")? Or it separate "dwelling units" (separate entrances, separate kitchens, etc.)?
All one home.
On the asset worksheet, just enter date of sale only. You then fill out the home sale worksheet with the deprecation info in section lV.
" they divorced and she bought him out. "
You probably don't mean that, you probably mean she got the house in the property settlement and he got something else, but it's important to be precise with language.
No, I mean she bought him out. It was not a settlement.
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