Hello All,

Does 2020 tax season get any easier? I have a client who co-signed for a nephew, whom the nephew lived in the home and sold it 2020; the nephews tax preparer wrote it off as main home exclusion; yet a client that was the co-signer is now holding the other 1099-S, for the other half. The problem is how to report the co-signers 50% that was not their main home (he only co-signed). The home sold as a loss. The co-signer who had nothing to do with the home sold; this year will be also selling his primary residence this year, which I cannot use the primary home exclusion for the home sold in 2020. The home sold 2020 was not a primary residence for the client nor was rental. Attempted to enter it on page 1 of 4797 as assets not related to specific property and noticed the loss was not limited to the $3000 but rather applied full loss to wages. Any suggestions how to approach this?