If I have to split rental between business sale and personal sale, do I have to prorate the personal sale part?

[catblackmore]

In figuring the taxes for sale of a business property (rental home) that was also used as a primary residence, the sidebar help in the business sale section says I need to determine the percentage of time the home that we used for our primary residence and then turned into a rental was used as a rental. (That percentage is 30%. So 70% of the ownership time was primary residence.) I know I have to calculate 30% of the sale price and expenses, etc. for the "sale of a business" part of the return; do I also have to calculate 70% of those items for the "sale of a personal home" part? What line items in each section do I have to figure the percentages on?

[Coleen3 · Accepted solution]

No. If you converted your home from personal to rental, the program will ask the questions to see if you qualify for the exclusion. You would only have this question if you indicated that you had personal use of the home during the time it was rented, such as a vacation home.

See the screen shot below. You should have initially selected, "I converted my home from personal to rental" when you first began.

You don't want to have entered anything in the second screenshot.Read the NOTE at the bottom.

[catblackmore]

Thanks!