jim5917
Level 3

Client sold main home that she lived in for over 2 of the last 5 years. She owned 33% of the home. AND 50% of the entire home was rental.

I have it set up so that 16.67% of the home is being depreciated (33% ownership * 50% business use) and the same 16.67% of the sales price is being used to calculate gain on 4797. This results in a $13k gain.

How do I account for the sale of the portion of the home used as her main home? Do I just use the same 16.67% (33% ownership * 50% personal use) to allocate sale price, selling expenses and adjusted basis on the 'Home Sale Worksheet'. And then from there, answer all the questions in Part II in order to exclude up to $250k in gains. And since this 16.67% was all personal use, no need to worry about 'Nonqualified Use" Part III?

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