If a life estate exemption is only a percentage for the life tenant, how is this entered in the deluxe software package?

[Critter]

A what ???   What are you doing ??  Are you completing the estate form 1041 ? 

[TomD8]

Assuming the home was sold prior to the death of the life tenant:

If the life tenant lived in the home (or owned the home and lived in a licensed nursing facility) for 2 of the 5 years leading up to the date of sale, he/she is entitled to the capital gains exclusion on their share of the gain.  If the exclusion amount exceeds the amount of their capital gain, the sale need not be reported on their tax return, unless he/she received a 1099-S.   If the sale must be reported by the life tenant, they would enter their proportional information in the Less Common Income > Sale of Home section of TT.

If the home was sold prior to the life tenant's passing, the cost basis of the home is its original (adjusted) basis.  There is no "step-up" in basis.

[MohicanJoe]

Please Help

[MarilynG1]

If the home is no longer in your name, you would not be considered a Homeowner.  However, you could be considered a renter.

There are 'Homestead Credits' offered in several states; can you clarify what state you are in and we'll try to help.

Click this link for more info on the Homestead Credit.