Thank you again Carl. I agree that the wording could be made significantly clearer. I actually worked out the IRS Home Sale worksheet manually, and that was easier than filling it out in TurboTax, I'm sad to say!
Do you have any guidance regarding interpretation of this additional question?
When entering the "Cost" and "Cost of Land" information, does the "Cost" field include the total price (i.e. structure + land?). I can look up the tax assessment of land value for each year that I owned the property. So, would I split the purchase price of the property between the land-value and the total purchase price, or is the original cost value inclusive? The description of "Cost of Land" indicates: "If the cost of this property includes the land value, enter the land value here." I interpret that to mean that the "Cost" field should be total purchase price, *not* purchase_price - land_value. That's because of the word include.
More concretely, lets say when I bought the property:
Purchase Price: 100k, Tax Assessed Land Value: 25k. The question is whether in "Cost", I put in $100k, or $75k?
