My daughter and her common law husband sold their jointly owned principal residence in 2021. The Proceeds of Disposition was $540,000.00 and their Adjusted Cost Base was $298,828.56. They both need to report this on their tax returns. As they jointly owned the property the capital gain is split 50/50.
Do they each put the total amounts of $540,000.00 and $298,828.56 into their individual Principal Residence Designation Worksheet or do they split those amounts in half and enter those amounts in column 2?
In addition do they still answer YES to the first two questions in column 3 and ignore the last two questions.
My daughter's husband's tax return is being done by his father using another tax software package so this may be causing an issue for me. I answer YES to the first two questions and ignore the last two but can only do that if I change to the forms method. When I return to the Easystep method Turbotax changes the first question in column 3 to NO and the percentage in question 4 becomes 100%. When I hit the continue button I get the Disposition To A Spouse Or Partner Page with the Spouse/Partner option already selected.
So how am I to fill this in under these circumstances? Is this a bug in the software. I have been using Turbotax and it's predecessor for many years and never run into a problem before.
