@andryvotty wrote:
If you sold the rental property for $500,000 or more, you will need to report the sale on Form 1099-S.
There is no magic number here with respect to the sale of investment or rental real estate. Further, the party responsible for closing the transaction is also responsible for filing the 1099-S (and that's usually not the transferor).
See https://www.irs.gov/instructions/i1099s#en_US_202201_publink1000280429
@andryvotty wrote:
If you sold the rental property for less than $500,000, you will need to complete Form 8949 and Schedule D to report the sale. Form 8949 is used to report the sale of capital assets, such as rental property...
Again, there is no magic number, but the sale of rental property (subject to depreciation recapture) is reported on Form 4797; real estate held for rental purposes is essentially business property.
@andryvotty wrote:
If you have taken depreciation on the rental property over the years, you may be subject to depreciation recapture when you sell the property.
With respect to rental real estate, the owner is subject to depreciation recapture whether or not depreciation deductions have been taken over the years (recapture is based on depreciation deductions "allowed or allowable").
