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Investors & landlords
I tried to follow all your instructions but the 4797 is still there. After I said Yes to "Did you stop using this asset in 2022" and I removed the dates (both disposed and acquired), I wasn't asked the question about Special Handling required, so I couldn't say No at that point. After I got thru all the assets with all the disposition dates removed, the 4797 was not there but with the software figuring depreciation for the entire year I no longer had net rental income for the year, but rather a loss that is disallowed. That is probably why the 4797 disappeared since when it appears it is allowing a loss to the extent of the rental income. After removing the disposition dates on all the assets and I went back into the first asset (the rental house) and put back in the disposition date such that the depreciation amount went down substantially, the 4797 re-appeared -- even after only 1 asset being changed to reflect the disposition date since at that point I had net rental income again. The 4797 was then allowing the loss to the extent of the net rental income at that point. I don't know why after I said Yes to Did you stop using the asset in 2022 and I removed both the disposition and acquisition date, I didn't get the No to Special Handling question that you said I would. Perhaps that is the problem now.