Hi,
I bought a 2 bedroom condo about 8 years ago and rented the second bedroom the entire time I lived in it. I sold it in 2022 and noticed that even though I qualified for the income exclusion my cost basis was really low, which resulted in my gain being much higher.
I was looking at the Asset screen for the Home Cost and I realized I entered 50% of the Cost since I was renting 50% of the unit. (Home Cost - $187k so I entered ~$93k as the cost.)
Now it calculates my gain with the full sale price $250k with a cost basis of $76k (93k cost - 17k deprecation) instead of the actual cost basis 170k (187k - 17k Dep).
Either scenario results in me getting the income exclusion for home sale, but should I fix it this year or was the correct thing to do? Considering that TT isn't calculating the cost basis or gain correctly I am guessing I did it incorrectly.
