Hello Friends,
I followed SeanE1's steps and found a few problems.
1) The prompts do not say to enter half of the sales price of the house and half of the sales expenses.... the prompt asks for the full sale price of the house and the full sales expenses...
2) And when listing the adjusted cost bias it also makes no distinction about the value being split...
3) So, when you follow the steps one is left with entering all of the full amounts and the turbo tax equation congratulates you on having saved $250,000 in capital gains taxes, but leaves you on the hook for the other $250,000 (assuming you have more than a total of $500,000 in gains).
4. The only way I could find to get the full credit was to go back to the beginning and act as if we were married filing jointly (which would actually be very difficult to do)... in this case the full $500,000 was waived.
5. So if one is filing married separately, which processes as single, how do you distribute the $500,000 joint benefit between the two people filing married separately? The only work around I could see was to split the sale price of the house in half, same with the sales expenses, same with the adjusted cost basis.... the problem with that is, the IRS has only one 1099-S on file that lists for the full sales price of the house....
Help!
