Sale of business Property

Forum|Forum|4 years ago
January 26, 2022
1 reply
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I recently sold an investment property and on form 8582, unallowed losses were $320,000. Does this get reported on form 4697 and which line? Ron H.

Best answer by ThomasM125

Since you are referencing passive losses and schedule E, I assume the property is rental property, which is different from investment property. If so, it will show up on Par II, line 10 of form 4797 when you report the sale. To populate form 4797 in TurboTax, you need to go to your rental section and edit the assets and report the sale of the property there.

JamesG1

Level 15

Do you mean IRS form 4797?

It sounds like it a sale of investment property that would be subject to capital gains rates and reported on Schedule D of the Federal 1040.

What is the source / nature of the unallowed losses?

Enter where do I enter investment sales in the magnifying glass in the upper right hand corner of the screen.

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Ron117Author

Level 2

I was referring to form 4797 to report the sale of the property. I also report a negative $25,000 on Schedule 1, since this is the maximum allowed on Schedule E on form 8582. form 8582 has unallowed losses on worksheet 5, total on column a and c. I also report depreciation on form 4562. My major question is if I can report the unallowed loss of $320,000 on form 4797 and what line does this loss get reported on. ron117