Client own property that he used 50% as home and 50% for rental. He sold property for $1,300,000 and did partial exchange. Exchange rental portion with $730,000 property and escrow gave him 50% of the sale price ($650,000).
Under depreciation schedule, I have 50% business use. When I entered $730,000 as FMV for property received, Lacerte multiple 2 and show $1,460,000 for FMV in Form 8824. Further investigated, under "exchange of home - residential" form 8824 worksheet, it also show $730,000 FMV received. But, he actually only received $650,000 for the sale of home portion.
I tried to contact Lacerter for help, but, they said they can not tell me how to enter report???
Does anyone know how to show $730,000 on form 8824 worksheet for "exchange of home - business" and $650,000 on "exchange of home - residential"?