@khopton wrote:
What is the criteria that determine whether Form 4797 is required? IRS Pub 523 seems to condition the need for F4797 based on making separate gain/loss calculations for business and residence portions of your property, not just the history of rental use. If anyone who has EVER had a property rented in it's entirety is supposed to make separate gain/loss calculations for business and residence portions of your property then I am mistaken. Also, am I allowed to just file Schedule E in the year of sale with zero rental availability days? Does the IRS see that is fine?
Thanks for helping. Please chime in if you can shed some light.
For real estate, you report it all on one form. In your case, Form 8949.
The IRS revised and completely messed up Publication 523 about ten years ago, so I don't even look at it anymore due to the numerous errors and misleading comments. But I suspect that you might be looking at where it discusses that if you have a main home and then you have a separate building that is used for business/rental, in which case you would need to split things up between 8949 and 4797. But that isn't your situation so it all goes on 8949.
