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don_cordell
Returning Member

Depreciation capture and adjusted cost of residence (sale of primary residence that was temporarily used as rental)

I'm sold my home in 2019 that I owned for 8 years.  It was my primary residence for the first year, then a rental for 4 years while I was overseas on official US Government orders.  I then returned and lived in the home as my primary residence for 3 years.  During the four years it was rented out, our accountant added depreciation onto our tax returns.  In recording the details of the sale and home expenses, there seem to be two areas on TurboTax where I enter in the depreciation: 1) Adjusted Cost Basis to determine the value of the home (though there is a note that states "If you included the business or rental part of your home as a sale elsewhere on your return, do NOT enter the depreciation here"), and 2) Depreciation after May 6, 1997.  If I enter the depreciation amount in both areas, is it double counting the depreciation?  My tax liability skyrockets if I enter it in both, while it is just high if I only enter it in one location.

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1 Reply
Carl
Level 15

Depreciation capture and adjusted cost of residence (sale of primary residence that was temporarily used as rental)

Since the home was not a rental in 2019 (or 2018 for that matter) then you will enter it nowhere *EXCEPT* the "sale of home (gain or loss)" section, and that's it with no exceptions. This property flat out will not appear anywhere else on your return (including the SCH E) with no exceptions.

Pay attention to detail as you work it through and read the small print. (Which is apparent you do that already.)

 

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