moniquescobey
Returning Member

Disposal of Rental Property Assumes a Sale and Generates Form 4797

Hi,

 

I am trying to dispose of a rental property due to a 1031 exchange.  When you check "yes" to Did you stop using this asset in 2023,  a field is provided for the disposition date. When that is filled in, a sale is assumed and TT generates Form 4797 whether or not you select "Special Handling Required".

 

How do I dispose of this residential rental asset without generating a taxable sale?