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How To Verify if One is Eligible for a Sale of Home Exclusion? - A sale of a house purchased in 2012 and lived on for 4 years and since 2017 they have been renting and depreciating it.https://www.irs.gov/taxtopics/tc701Qualifying for the Exclusion. You're eligible for the exclusion if you have own

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https://www.irs.gov/taxtopics/tc701

Qualifying for the Exclusion. You're eligible for the exclusion if you have owned and used your home as your main home for a period aggregating at least two years out of the five years prior to its date of sale.

How does SureFire handle this situation?

Step 1 Record the rental property on the Asset worksheet if you have no yet done so

Step 2 Dispose of the asset and add the selling expenses

Step 3 The gain will flow to form 4797

Step 4 On the Sch D worksheet 2 report sale of home, complete the entries, including enter the depreciation on line 9

Step 5 The gain from the sch D worksheet 2, will flow to 4797, you may have to override Form 4797, line 30, page 2 to reflect the gain calculated on Sch D worksheet 2

Note: Depreciation expense will not be excluded from tax

Tags: federal,form