Thank you, Paula.
So if he spent time at the house for the equivalent of say 10 months during the 5 years he divides 24 into 10 to get to deduct 42% of the capital gains (Per Pub 523 - 'health related move for someone else for whom the home was his or her residence')?
Also to figure the basis for the rental basement do I prorate the purchase price by percentage of square feet in the basement - and then add the $30,000 in basement improvements to get the cost basis? Then I would divide the sale price proportionally?
Thanks, again!
