A loss on the sale for this investment property would be reported on Schedule D and on Form 8949 as a short term capital loss and on Form 1040 Line 13. It is not property to be depreciated and reported on a Form 4979. To report the sale and the loss you will need to upgrade to the Premier online edition.
To enter an investment sale other than from a brokerage account (1099-B), follow the steps below.
- Click on Federal Taxes (Personal using Home and Business)
- Click on Wages and Income (Personal Income using Home and Business)
- Click on I'll choose what I work on (if shown)
- Under Investment Income
- On Stocks, Mutual Funds, Bonds, Other, click the start or update button
Or enter investment sales in the Search box located in the upper right of the program screen. Click on Jump to investment sales
On the next screen, click Yes
On the next screen, click No
On the next screen, choose the option that pertains to the type of investment sale you are reporting and continue with the section until it completes.
