Bill50
Level 3

client owned house for 10 years.  started renting it on 7/1/17 and sold it on 6/30/20 for a substantial profit (180k v 93K basis).  From everything I can find, other than depreciation recapture, the gain should be exempt as "sale of primary residence."  However, Proseries is completing Part IV of the "Home Sale Worksheet" and only exempting 80% of gain (1000 days rented v 5000 days owned). IRS worksheet states you would complete Part IV only if the "non-use" days were after 2008, during the 5-year period and before the time when the taxpayer used the property as a main home.  This is not the case.  Any ideas on why PS is saying it is only partially exempt?

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