I totally agree there should NOT be a 4797 in my return. I have been thru this Rental section at least a dozen times being careful each time. I just went thru it again step by step reading your directions as I went thru it. My screens differ from yours slightly. For instance, I don't have the screen that is titled "Tell us more about this rental asset" in which I can select BOTH "I purchased this asset AND the item was sold, retired, stolen, destroyed, disposed of, converted to personal use..." Likewise, I don't have the info on the bottom of that screen regarding "Have you used this item 100% for business since you acquired it and the date you first started using it for business." Instead, I have a screen that says "Did you stop using this asset in 2022 for business purposes. Select Yes if item was sold, stolen, destroyed, converted to personal use, given away, taken out of service for any other reason." I selected Yes. The next screen has Date of sale or disposition in which I entered 4/30/2022 and Date acquired which was pre-populated from prior years' returns (5/1/2007). I indicated Special handling was required by selecting Yes. The net profit ends up being $2,070. Form 4797 is still showing. Part 1, line 2 lists rental house with date acquired and date sold as listed above. Gross sales price is listed at 0 and depreciation allowed is the total depreciation taken thru 2022. Cost is listed and Gain or loss listed is -$2,070. I.e. loss to the extent of this year's rental income is being allowed. This loss is flowing to Part II of Form 4797, lines 11, 17 and 18b, and then flows to the 1040. I don't know why my screens are somewhat different than you present, but my screens seem to be gathering the same info yet the 4797 still remains. However, the fact that my screens differ from what you present may indicate why the program isn't working like you indicate it should in my case. Why are my screens not exactly the same? And, why isn't the software working correctly in my case?
