Good morning,
I have a new client who sold a rental property; its was formally principal residence but can't take exclusion because it was a rental for over 3 years?
The property was owned only by the wife. NOT a community property state.
Sale proceeds when into escrow and husband received half.
Should the full amount of the proceeds be reported by the wife? Any adjustment for portion that went to husband? If there is an adjustment, how to report?
Thanks,