I have a partnership 50% owned by me and 50% owned by my son. The partnership purchased a home for a rental in August 2023. The partnership sold the home for a loss in April 2024. We did not have any rental income in either 2023 or 2024. The partnership filed a form 1065 supported by forms 8825 and 4562 for 2023 which showed a loss in 2023 and distributed K-1s to the 2 partners.
I have completed a pro-forma form 4797 for 2024 and will complete form 8825 for the expenses associated with the home.
2 questions:
1) How does the form 4797 loss make it to Form 1065?
2) Should I omit depreciation for form 8825 in 2024 since I would add it back to for 4797 if took depreciation as 2024 expense?
