If the property was depreciated on an Asset Entry Worksheet, you can link the asset to the Home Sale Worksheet. This will transfer the depreciation to the Home Sale Worksheet. This will also keep the adjusted basis calculation on the Adjusted Basis of Home Sold Worksheet from transferring to the Home Sale Worksheet.
If the property wasn't linked to an Asset Entry Worksheet, go to the Part IV - Exclusion and Taxable Gain section of the Home Sale Worksheet and enter any Depreciation allowed or allowable on the property for periods after May 6, 1997.
Homes using for business purposes or rental properties
If the client was entitled to take depreciation deductions because they used the home for business purposes or as rental property, enter any Depreciation allowed or allowable on the property for periods after May 6, 1997 under Part IV - Exclusion and Taxable Gain. This portion of the gain can't be excluded. You also need to enter any AMT depreciation allowed/allowable on the property after 5/6/1997, under the Alternative Minimum Tax Calculation section.
If depreciation has been claimed on this property and the depreciation for regular tax is different from the depreciation for the Alternative Minimum Tax, use the Adjusted Basis of Home Sold Worksheet to calculate the basis of the home.
