Form 4797- Entering rental property sale

Forum|Forum|1 year ago
April 6, 2025
1 reply
5 views

Hello community,

Can you provide some suggestions please?

Form 4797- Part III

1- How do i enter 0 on line 26G- the property was depreciated SL and purchased after 1986.

2- How Do I prevent any amount from showing up under section 1245? Right now it keeps showing the allowed depreciation amount in line 25 which is for section 1245 property.

I've been trying this for hours now.

Thanks in advance

This topic has been closed for replies.

George4Tacks

Level 15

What was the property?

What type do your think it was (is)?

Answers are easy. Questions are hard!

M

MDFTAXAuthor

Level 3

It is a House that they rented out from 2010-2024. Not commercial property.

Purchased as a principal residence in 2003.

Did not take accelerated deprecation. Used SL depreciation

I really am not sure where to place it. What section should I place the depreciation that has to be recaptured/ taxed as ordinary income.

I have done everything else on this form correctly.

Thanks so much in Advance

George4Tacks

Level 15

I do not think the purchased as a home really plays a role, since it was so long ago. https://accountants.intuit.com/support/en-us/help-article/form-8949/entering-disposition-rental-activity-multiple-tax/L0JyVc5rc_US_en_US?uid=m95y9bqv$srcG4T may help

Depreciation is 1250, if that helps - your result should show 4797, pg 2 line 26 as a blank or zero.

Answers are easy. Questions are hard!

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