Principal Residence Tax Issues
Note: This course is also included in the Beyond the 1040 course.
We will examine a variety of tax issues relating to the taxpayer’s principal residence from the date of purchase to the date of disposition. We will review the mortgage interest deduction, deductible business travel to and from the residence, and the §121 exclusion, as well as converting a residence to a rental and claiming missed depreciation.
Upon completion of this course, you will be able to:
- Summarize the requirements for deducting home mortgage interest and real estate taxes on Schedule A, Itemized Deductions.
- Determine if a taxpayer has a home office that is the taxpayer’s principal place of business.
- Distinguish deductible business transportation versus nondeductible commuting for travel between the residence and another location.
- Determine the basis of a residence when it is converted to a rental and upon disposition.
- Claim missed depreciation by filing Form 3115, Application for Change in Accounting Method.
- Compute the §121 exclusion and report the sale on Form 8949, Sales and Other Dispositions of Capital Assets, or Form 4797, Sale of Business Property, when there has been business use of the residence.
- Interactive review questions
- This course includes an e-book. CPE is issued after exam is successfully completed.