So, here is where I am confused:
Under the sale of the rental property, it says to report it as Business Property Sale.
Enter only the date of sale or disposition for this property if you disposed of this asset in any of the following situations:
- You gave this asset away.
- You converted this asset to personal use.
- This asset was an intangible asset not considered section 1245 property.
- The business-use percentage varied over the life of this asset.
- You traded this asset for like-kind property.
- This asset is a rental, home office, or home office asset that qualifies for the exclusion of gain from the sale of a personal residence.
If you disposed of this property by any of the above means, enter your sales information later in the interview under "Business Income/Sale of Business Property."
Under the Business Property Sale it says to report the non-business use as personal property sale.
If you used the asset 100% for this business, enter total amounts here. If you used the asset for any other purposes, you must allocate the total amount to the percentage of use for this business.
For example, if you used this asset an average of 75% for business over the course of your ownership, and you sold the asset for $1,000, you would allocate the net sales price as follows:
$1,000 X 75% = $750
Allocate your cost or basis in the same manner.
Report the non-business percentage of the property separately as the sale of "other investment or personal use property."
So this is why I was thinking I needed to allocate 17% of the sale/cost to the Sale of Business Property and the remaining to Sale of Home/Personal property.
Thanks for all of the advice.
