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Form 8824 for property part use as home

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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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2 Replies 2
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Level 12

I'm a ProSeries user, so I may not be much help, but you are you able to enter a 'new' Like-Kind exchange without linking it to the current asset?  It might be easier.  That way you can enter the actual numbers that you want (the Adjusted Basis, $650,00 sale price and $730,000 purchase price), and the program won't get confused with the residential portion.

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Level 3

Thank you for your answer.  When I check Form 8824 instruction, it said when property has multi use, I should use worksheets to calculate home and business 8824, then, add them together to real form 8824 for return filing.

Can ProSeries handle this type of 1031 exchange?  I talk with Lacerte, not too helpful. 

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