When you want to show both people at different locations engaged in a conversation, set up each scene locale once and then INTERCUT without repeating the slug lines for those scene locations, until you get to the location where the conversation ends:
INT. HOSPITAL ROOM - DAY
The phone rings and Kacey answers.
KACEY
Hello?
EXT. RETIREMENT HOME PARKING LOT - DAY
Jake fumbles for his car keys while talking on his cell phone.
JAKE
Hey, it's me.
INTERCUT
KACEY
Where are you?
JAKE
I'm at the retirement home.
KACEY
You're supposed to be here!
JAKE
I'm on my way, take it easy...
KACEY
Take it easy! I'm here all alone and
all you can say is take it easy? You
are impossible!
Kacey slams down the phone.
EXT. RETIREMENT HOME PARKING LOT - DAY
Jake hears the line go dead. He puts away his phone and climbs into his car.
(etc.)
INTERCUT isn't just for phone conversations -- you can also use it when you want to show a several actions going on at the same time and you cut back and forth between each bit of action, e.g.
EXT. MANSION - NIGHT
The Thief skulks in the shadows...
INT. MANSION BEDROOM - NIGHT
Clutching a cocktail, the Socialite stumbles to her bed.
INT. CAR - NIGHT
In his Mustang, P.I. peers through the windows, looking for an address.
INTERCUT:
Collapsed on her bed, Socialite reaches to turn off the bedside lamp and spills what's left of her cocktail.
Outside, Thief watches until he sees the LIGHT in the upstairs window go dark.
PI guns the engine of the Mustang, and SCREECHES around the corner to the gates of the Mansion.
Inside the Mansion, Thief slowly climbs the stairs....
BEDROOM
Socialite is passed out on the bed, oblivious to the danger.
[like that]
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