Question

Line 21 of Form 8829 Asset Entry Worksheet

Forum|Forum|1 year ago
February 24, 2025
1 reply
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My home office is inside the primary residence. I sold the house. The gain falls under 500K for married filing joint. Do I still need to enter the business portion of the asset sales price on Line 21? If so, how do I enter Line 21 and 22? Will it avoid the 500K capital gain exclusion?

D

DianeW777

Yes, you must indicate you used part of your home for business. That portion of your home will have a taxable gain portion because you had depreciation expenses. The $500,000 will not rule that out.

When asked about the home office you should say 'Yes' and be prepared with the depreciation total for all years you used it. TurboTax will calculate your exclusion and taxable gain.

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