ThomasM125
Expert Alumni

Business & farm

The sale of business or rental property would show on Form 4797 Sale of Business Property and then flow to schedule D and/or schedule 1, line 4. Any depreciation that was recaptured would be reported as ordinary income on schedule 1 and the balance of your gain would show on schedule D, line 11 as capital gain income.

 

On your form 1040, the income would show up on line 7 (capital gain portion) and/or line 8 (ordinary income portion.)

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