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Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Question

How does UltraTax CS handle the sale of a personal residence, which includes a home office?

Answer

UltraTax CS treats the home office entered in the asset module as being within the personal residence. Business property located within a personal residence is not required to allocate the basis of the property and the amount realized between the business part of the property and the part used as a personal residence. In addition, there is no need to report the sale of the business part on Form 4797. Any depreciation allowed or allowable after May 6, 1997, is not allowed to be excluded. UltraTax CS treats the home office entered in the asset module as being located within the personal residence. All information is reported on the Home sale worksheet, including depreciation allowed or allowable after May 6, 1997, for assets placed in service after that date. Home offices not located within a personal residence need to be manually allocated between the business and personal portions and entered in Screens Sale and Home for proper reporting.

Related topic: Office-in-home information FAQs (1040)

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