@disgruntled3
In view of all the posts you made you really should be either using a paid tax professional OR upgrade to the LIVE option so you can get one on one assistance.
But since you are using a Sch E and not a Sch C then the answer is still the same ... if you deducted something as an expense instead of depreciating it as an asset then you simply have regular income to report on the Sch E ... do not use the form 4797 ... just lump it in with rent.
