I bought and live in my home in 2011. Converted to rental when I moved out in 2021. Rental ended in June 2024. I prep'ed the house and sold it in Aug 2024 for a gain.
Depreciation was based on the original house purchase adjusted basis and not FMV at the time of conversion.
How do I report the sale. I do qualify for 500K exclusion.
A. Should I report rental under rental section? Sale under personal.
B. Rental and Sale both under Rental section? But then how do I claim the exclusion
C. Rental. While reporting Sale under rental section, it asks for Sale price for Business portion only. Is that 12.5 % of sale price in my case? 20 months of rental period over 160 months of ownership = 12.5%. The remaining Sale price and basis - should that be now reported in Personal. That is so strange. None of my forms would match 1099 S value.
Option A is so much simpler. But HELP I want to do the right thing. This is on TT Desktop.
