Rental Property Sale to Related Party

Forum|Forum|4 years ago
January 13, 2022
2 replies
11 views

Anyone know how to report related party sale for rental property on Lacerte. We can't find an ideal way to stop the loss that post on Form 4797.

Thanks in advance.

Lacerte Tax

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PhoebeRoberts

Intuit Community Champion

I think entering a second transaction with an offsetting gain and calling it Related Party Loss, and coding it in the Sale of Asset section so that it ends up in the right place on the 4797 is the workaround I've used.

sjrcpa

Level 15

Me, too.

The more I know the more I don’t know.

C

Cherry574Author

Level 2

Thanks all.

And finally I find the checking box under the 'depreciation' -'additional disposition information'-'related party loss'. After clicking it, form 4797 will report 0 loss and the property will be labeled as 'nondeduct-IRC sec 267'