@DaveCVIS wrote:
Maybe in 4797, I could add a note in the Description of Property, “Related Sale, Loss Not Allowed?” Could it be this easy? The instructions for line 18b in 4797 do advise to “Redetermine...”
Overriding will void your ability to e-file.
My option #3 is similar to what you are saying, and is probably the correct way to do it (that is how you are supposed to enter a home that qualifies for the $250,000/$500,000 exclusion). But it is more tedious in TurboTax, which is why I suggested option #1.
@DaveCVIS wrote:
2020 depreciation will also be consistent with depreciation history.
You DON'T change the Basis in the rental section, otherwise that will mess up the depreciation. That is why in I said in the first two options you say YES to the "Special Handling" screen ( which means the sale in not reported in the rental section).
Entering a different Basis in the "Sale of Business Property" section will NOT affect the depreciation.
