@Mag Jen wrote:
Please advise what I should have entered?
I owned a house 22 years, live in 12 years, rented out 6 years, move back to live in 2 years, and then rented out for 2 years and sold the house. Should I enter 100% or 36.4% (=8/22) for business portion only?
Thank You.
What section of the program are you entering this in? In most cases, you should be reporting this in the rental section, while you go through the "assets" for depreciation to indicate they are sold (based on what you have said, you can say "NO" to the "Special Handling" screen).
You can still enter 100% of the sale. But in your case, you DO have "Nonqualified Use" which will prorate your exclusion. After you say it was your Main Home, it should walk you through things, but read the screens VERY carefully because it can be quite confusing. In your case, you have about 6 years of "Nonqualified Use", so about 6/22nds (27%) of your gain will NOT be excludable by the $250,000/$500,000 Main Home exclusion (plus the depreciation is NOT excludible either, so your taxable gain will be higher).
You may also consider a good tax professional for this year.
