Re: Sale of Rental Property - Community
Level 15

Investors & landlords

on the worksheet for the rental property, there will be a quickzoom link to the asset entry worksheets that contain the details of the assets.   the sale info is entered in the assets entry worksheet - starting with line 20. the sales price and closing costs need to be allocated between the land and building. disposal of the activity changes the treatment from passive to non-passive so all previous unallowed losses will be allowed without limitation - flows to schedule E page 1.  the sale of the building will flow to form 4797 page 2.  the sale of the land will flow to form 4797 page 1.  the redetermined gain on 4797 flows to schedule D line 11. the capital gain portion and the sec 1250 recapture portion flow to the capital gain worksheet where the tax is computed. 

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