ETax847 Posted February 23, 2021 Report Share Posted February 23, 2021 Client turned his previous residence into a rental for the past 2 years. He sold it so is still eligible for the homeowner's exclusion. On what schedule does the depreciation recapture come into play? Quote Link to comment Share on other sites More sharing options...
TaxGuyBill Posted February 23, 2021 Report Share Posted February 23, 2021 The sale is supposed to be on Form 4797, just like any other rental. The amount of Unrecaptured Section 1250 Gain is shown on page 2 of Schedule D, and is actually calculated on one of the capital gain worksheets. The exclusion should also be entered on Form 4797. https://www.irs.gov/instructions/i4797#idm139902460554688 2 Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted February 23, 2021 Report Share Posted February 23, 2021 When you do the worksheet for the primary exclusion on the 8949 - it would also calculate D/WI 2 Quote Link to comment Share on other sites More sharing options...
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