mm1
Level 5

I have a military client who bought a home in 2013, got orders and was transferred more than 50 miles, rented it out from late 2016 to April 2019, then moved back in and lived in it until sold. He sold the property August 2020. He qualifies for the exclusion based on the rules for the military. I need to figure out how to enter the personal gain exclusion so that it only reports the depreciation taken portion as taxable. Asset is on the tax program and I cannot get the Form 4797 to tax only the depreciation and not the total gain.

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TaxGuyBill
Level 15

You need to link the Asset Entry Worksheet to the "Home Sale" worksheet, and fill out the Home Sale Worksheet.  You can link it in the disposition section of the Asset Entry Worksheet.

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mm1
Level 5

Thank you!

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