TP purchased a condo but never rented it or lived in it. Then sold it in 2023 at a loss.I entered the data in 4797 but the loss doesn't reflect on Schedule D.

7 replies
50 views

What am I missing or doing wrong?
The condo was an investment property.
Thanks in advance, Christopher

ProSeries Professional

This topic has been closed for replies.

T

TaxGuyBillAnswer

Form 4797 is for selling business assets.

If it was purely for investment purposes, you enter the sale on Form 8949/Schedule (in ProSeries, use the 1099-B worksheet).

BobKamman

Level 15

Same question with additional details. What was their purpose in buying it? Were they going to live in it, rent it, or flip it? Did they make any improvements while they owned it? How long between purchase and sale?

C

chapguy19Author

Level 5

It was just an investment property they hoped when it was finished, they could sell it or rent it out.

They held it for 9 years.

Property is in India.

They had moved to the US and didn't want to be absentee owners.

The Condo was part of a large project.

BobKamman

Level 15

Vacant? For 9 years? Were there assessments, taxes, utility bills? Did they ever visit? But stayed elsewhere? Any family there? But none of them came near it?

But who are we to question it. Leave that for IRS.