Level 1

sale of rental property

Forum|Forum|3 years ago
September 26, 2022
4 replies
10 views

My client sold a rental property he has owned and depreciated since 2008. My question is, do I have to reduce the cost basis by the depreciation he has taken on the unit and improvements for the last 11 years? I believe he does but I am trying to find out if there are any deferrals of gain that are available to him. I assume the gain on the sale is all ordinary income. I believe I need to complete form 4797. Is this correct?

Thank you for your help?

Joe Kane

This topic has been closed for replies.

sjrcpa

Level 15

This is a public forum. REMOVE YOUR PHONE NUMBER!

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

T

TaxGuyBill

Level 15

What software are you using?

The program should handle all of the taxation of the sale. Unless the rental was sold in a 1031 Exchange, there is no deferring of any of the gain.

abctax55

Level 15

"....I assume the gain on the sale is all ordinary income. "

Wrong assumption.

HumanKind... Be Both

IRonMaN

Level 15

But the 4797 is a good start.😁

Slava Ukraini!

BobKamman

Level 15

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

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