Diana2
New Member

For column 3 of Princ Res Worksheet, a moderator in this forum said the questions should be answered yes, no, no, and blank if the property is sold to a third party.

Why is it necessary to answer the questions in column 3 if the sale is by a husband and wife to a third party, since the questions (per the heading) are supposed to be related to a disposition "to your spouse/partner"?  If the property was sold to a third party (and there is no disposition to your spouse/partner), shouldn't all the questions in column 3 be left blank?  If left blank, will this affect NetFile?

Investors and rental owners

The top two questions on the third column of the worksheet are "Did your spouse/partner also dispose of this property" and "is all or part of the disposition going to your spouse" So if you and your spouse are both selling the property to another person, you would answer YES to both of these questions, and then ignore the last two questions.

The title is just a bit miss-worded.

Investors and rental owners

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.  

Investors and rental owners

Is this answer still applicable to 2023  using the cd version of turbo tax? The husband and wife are filing separate returns with 50 % of the proceeds and cost for a property that was their principal residence for all  years up to the sale in 2023. Are answers required in Column 3 of the PRWS  and if so how are they answered ?

Investors and rental owners

@GP2024 Yes, the PRWS worksheet is still the same, and you still need to fill out column 3. 

Investors and rental owners

Thanks for your reply.  Just to confirm the answers are yes, yes , blank and blank ?

Investors and rental owners

@GP2024 Yes, those are the answers.