In 2006 I purchased a duplex for $97k and sold in October, 2020 for $150k. Over the years there have been many renovations. 1st floor was rented and 2nd floor was my home/primary residence.
In Dec 2017 I moved and rented the 2nd floor. Before Dec 2017 I had the duplex listed as one property in TurboTax and was just deducting 50% for the rental side. But for 2018 I had a dilemma because I couldn't do it that way anymore, so I converted the duplex into two properties for TurboTax.
So, in TurboTax, I have them treated as two separate properties:
Duplex 1st Floor – rented from 2006 – Oct 2020.
Duplex 2nd Floor – primary residence from 2006 – Dec 2017. Rented Jan 2018 – Oct 2020.
Since I lived in "Duplex 2nd Floor" 26 months out of the last 5 years, I can count it as a sale of my primary residence.
I have the following assets listed in TurboTax for each side of the duplex.
Duplex 1st Floor:
Duplex 2nd Floor:
I have several questions:
I have a 1099-S from the sale, but where do I enter it?
I am stumped by this question:
Do I answer "Yes" or "No" to the above? Does this apply to my situation? Only the yellow highlighted condition might apply?
I didn't even have "Duplex 2nd Floor" listed in TurboTax until I moved in 2017. From 2006-2017 it was my primary residence, so 0% business use. Then 2018-2020 it was 100% business use. Not sure how to answer the above question.
How do I deal with the "sale" of the renovations, both for the Duplex 1st Floor that was always rented and for the Duplex 2nd Floor that was once my primary residence and then converted to 100% rental last 2 years 10 months?
For example, I don't know how to answer this for Duplex 2nd Floor (that was always a rental):
What would I enter as the sales price for the renovations?
I only have one sales price as it appears on the 1099-S -- $150k for the entire duplex. I used 1/2 this sales price for each asset, $75k for Duplex 1st Floor and $75k for Duplex 2nd Floor.
Is that correct, or should it be entered differently?
Any help is greatly appreciated!
Dave
