sale of personal residence (rental)

[MAMalody]

I can't get this thing to work out. I have a pastor who moved a couple of years ago and rented out his house for two years. 2007 he sold it. Meets the requirements for IRC121 exclusion but must recover the depr. I can't get this thing to flow right. The house and land were separated on the Asset Entry sheet. I can get the exclusion to work on the house, but how do I get it to flow for the land. Do I just override the exclusion figure on the 4797 to accomodate the land?

[Pacun]

I can't get this thing to work out. I have a pastor who moved a couple of years ago and rented out his house for two years. 2007 he sold it. Meets the requirements for IRC121 exclusion but must recover the depr. I can't get this thing to flow right. The house and land were separated on the Asset Entry sheet. I can get the exclusion to work on the house, but how do I get it to flow for the land. Do I just override the exclusion figure on the 4797 to accomodate the land?

If both were sold together and to the same person, you only add the cost of land to the basis and you handle the sale of the house only. You only make a distinction for depreciation.

[MAMalody]

I always carry them separately, and didn't even think of putting them back together for the dispostion since the 121 exclusion applies. Thanks.

Mike

[joanmcq]

The land goes on part 1 of the 4797 and the rest on pt 3. I haven't done one of these in a couple of years, but you did use to have to overrride on the 4797 to get the exclusion to work on the 4797. Its supposed to be in part one and you exclude the amount of gain less depreciation. maybe the program will handle it now.