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TP converted personal residence, owned since 5/2012, to rental property 3/1/2016 and wants to sell in late 2019.

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Level 3

 TP moved out of state for new job in 2016 and never lived in the property again. I don't think TP qualifies for partial exclusion because TP fails the 2 of 5 years use and residence test. The way I read the regs is that the TP would have had to sell by 3/1/2019 to be eligible for full exclusion. Please confirm. Regardless of exclusion eligibility, TP must recapture deprecation.  Is there any trick to entering this transaction in Lacerte? Thank you.

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Level 15

It is pretty straight forward. You should be able to find what you need here https://accountants-community.intuit.com/articles/1861452-reporting-a-sale-of-home-on-an-individual-...

Sounds like you may also need to do a return for the state the property is in. 


ex-AllStar

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Level 15

It is pretty straight forward. You should be able to find what you need here https://accountants-community.intuit.com/articles/1861452-reporting-a-sale-of-home-on-an-individual-...

Sounds like you may also need to do a return for the state the property is in. 


ex-AllStar

View solution in original post

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Level 3
It's not straightforward at all. My main question is the exclusion eligibility. I have been through the page you posted and if a partial exclusion is allowed, the entry, as to number of days, is tricky. For me, anyway.
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Level 15
You indicated selling late 2019. You correctly read that they need to sell by 3/1/2019. It is past that date, so there would be no partial exclusion. Just do a sale of a rental. I assume you are depreciating, so do the sale through the depreciation screen.
https://accountants-community.intuit.com/articles/1857451-individual-1040-sale-of-property-used-as-a...

ex-AllStar
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Level 3
Great. Thank you for taking the time to answer - two times!!!
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Level 15
(a) don't forget to share answers when you can and (b) mark answers as helpful when they are (c) add comment (like you did) when it does not really get you where you want.
 

ex-AllStar
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