Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Client sold personal home he never lived or rented (used for storage) in 2020. I do not know how to put this on his return correctly.

My client sold a home that he owned for 17 years in 2020. He never rented or lived in the home. I am not sure how to report this sale. 

2003 purchase price   $  49,000
2020 Upfits                  $  66,500
2020 Sale Price           $150,000
2020 Sales Costs         $      586

Right now I have it on a form 6252. However, it is not an installment sale. I hope someone can help me.

Thank you.

 

 

Labels (1)
0 Cheers
1 Solution

Accepted Solutions
Just-Lisa-Now-
Level 15
Level 15
Unless it was used in business or as a rental, there shouldn't be any depreciation to deal with on a personal home like that.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

View solution in original post

12 Replies 12
IRonMaN
Level 15

Schedule D is a popular answer today for the sale of homes.

ACME Taxes, Tatoos, Tires and Tomatoes (I had to get rid of the turtles - they kept running away)
BobKamman
Level 15

What was he storing?  Inventory and business equipment?

Just-Lisa-Now-
Level 15
Level 15
maybe a hoarder?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

He is a bit of a hoarder!

0 Cheers
Just-Lisa-Now-
Level 15
Level 15

You need Sch D, not the 6252.  This is how I would do it, I like to keep my sales price actual just in case a 1099S was issued, I want them to match.  Use the 1099B worksheet.

SELLSECONDHOM.png

 


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

This is perfect. Thank you so much. I really appreciate it.

0 Cheers
Just-Lisa-Now-
Level 15
Level 15
so he used it for storage for his real estate business? how does depreciation figure into this?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
0 Cheers

I do not need to report depreciation? He is a real estate professional and he is insisting that I need to.

0 Cheers
BobKamman
Level 15

Has he been depreciating it for the last 17 years?

0 Cheers

No.

0 Cheers
Just-Lisa-Now-
Level 15
Level 15
Unless it was used in business or as a rental, there shouldn't be any depreciation to deal with on a personal home like that.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

View solution in original post

ljr
Level 4

I would also explain that the depreciation recapture on the sale for the depreciation he never took over 17 years would decrease his basis and create a larger capital gain. Sounds like he really does not understand depreciation.

0 Cheers