Level 3

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"?

thank you.

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