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Old 02-22-2011, 12:59 PM
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Personal Use on Schedule E

I rented out my primary residence starting on Dec 1st of Last year. What I noticed is that I incorrectly marked NO on the Personal Use section on Schedule E stating that I had not used it for more than 14 days as my primary residence.

Will this need to be Ammended (for which I can't find how to do as of yet) and will this incorrectly mark my primary residence as one year less when I sell and affect my capital gains tax.



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Old 02-23-2011, 09:57 AM
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“Will this need to be Ammended (for which I can't find how to do as of yet) and.”---->No, I don’t think so;in general, you need to file your amended tax return if you should correct your filing status, total income, tax deductions, or tax credits. I think you’ll be fine. If the IRS has any questions or if they need extra information, they will let you know. If the return cannot be processed for some reason (such as missing information or forms), they will sent the return back to you with an explanation of what they need; you are not likely to hear from the IRS unless there’s some sort of mistake or if they have more questions. just keep those copies of you return in your tax files for at least three years.
“will this incorrectly mark my primary residence as one year less when I sell and affect my capital gains tax.”---->No; as you know, a capital gain is a profit that results from the sale of your capital asset, in this case your property. Capital gain is the difference between sale price and original price (cost basis).UNLESS you file your amended return on the sale of your property, amended return doesn’t impact your capital gain tax. For example, assume that your capital gains & losses on the sale of the property were incorrectly reported, then you have to use Form 1040 and 1040x to file your amended return.



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Old 02-23-2011, 10:28 AM
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Thanks for the info. Much appreciated!



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