I've read several questions here about how to correctly fill in the Adjusted Cost Base when completing the form for Designation of a Property as a Principal Residence owned by spouses. My husband and I sold our 22 year old home in July 2019 and I have filled out the form as us each owning 50% of our home. Every answer I've read here say that TurboTax doesn't split the adjusted cost base 50/50, so you need to divide the adjusted cost base in half and enter that figure for each spouse. But it will divide the proceeds of disposition. So, I entered 50% of the adjusted cost base of $112,500 which works out to be $56,250 for each of us, but when I look at the actual tax forms, the 50% figured has been halved again and shows as $28,125 which is totally incorrect. The proceeds of disposition flow through correctly at 50%.
Has something changed with the way TurboTax is calculating the adjusted cost base? Am I missing something? I need to make sure the information I'm entering is correct!! (I'm using TurboTax Standard online edition).
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