Another sale of home/rental with mixed %

[ATSMAN]

Without knowing how proseries handles business use % with depreciation it should have used the business use percentage for each tax year to prorate the depreciation..

Check form 4797 part 3. Does the figures make sense? Line 24.

[snowshoe]

Have you completed the worksheets in Pub 523 like was suggested the last time you asked this question? https://www.irs.gov/publications/p52...blink100086485

Of course I did- I'm still not confidant in what I'm seeing. These are more in depth questions. And it didn't seem that the answer I got was everything that I needed to do. Your comment is kinda snarky. Please move along, if you don't feel like being helpful.

[kathyc2]

Have you completed the worksheets in Pub 523 like was suggested the last time you asked this question? https://www.irs.gov/publications/p52...blink100086485

[snowshoe]

I feel frustrated with this situation. It's a cant see the forest for the trees situation!

My client (and good friend) bought a home in 2009. They rented out 23% & we've been doing a schedule E since then. In 2020, they moved & rented the entire home for one year (changed biz use to 100%) and at that time (in 2021) sold the home to the renter.

Should they still qualify for exclusion?
Why does the depreciation amount show up under capital gains?
This confuses me, because, I believe I am still required to do the disposition worksheet for this depreciated property & the depreciation is showing up again (for recapture)- is this correct?
And this disposition leads to another issue & that is that the home was 23% biz use for 130 months & 100% for 18 months (for deprecation purposes). So- on my asset worksheet, I have the unit as 100% business use for 2021 & in the disposition potion, I'm required to enter the 'business portion' of the sale price. (which I can't figure out!) Am I making this way more complicated than is necessary?

b/t/w I use Proseries, if that's relevant.