Selling personal home/rental property


S

Simba327

I have a client who has sold his home. He qualifies for the
s.121 exclusion for 50% of the home used a personal
residence. In the 4 years he has owned/lived/rented the
home, he put a new roof and made some other improvements
that is common to the home and depreciated them using 50% of
the cost as the basis.

How does the sale get reported now? Does the basis of the
improvements getted added to the basis of the home? I assume
I treat it as two separate transactions, 1 personal, 1
rental. Do I lump everything together on the 4797?
 
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