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Level 2
posted Apr 17, 2022 2:56:18 AM

How do I enter the land portion for the sale of rental property on Form 4797 for Part I, 2 ? Building portion for Part III ?

The way it was entered, both the land and building are showing in Part III

0 5 1717
5 Replies
Expert Alumni
Apr 17, 2022 4:16:16 AM

Since land is not depreciable, it needs to be included in Part I Form 4797.

 

Go back to your entries where you would separate out the land from the building.

 

 

Level 2
Apr 17, 2022 3:50:23 PM

Where are  “…the entries where you would separate out the land from the building…”?

I found a place at the bottom of the rental for sold rentals  or  Sale of Business Property?

How do I show it was inherited in 10/2008?

 

Expert Alumni
Apr 18, 2022 5:47:02 AM

You would have needed to enter that at the beginning.

 

 

 

Level 15
Apr 18, 2022 6:23:40 AM

I found that for unknown reasons the program reports the land in part III. But since it's not depreciated it doesn't make any difference on "the bottom line". I've not yet taken the time to dig into and research this myself. But I do recall that last year when helping someone that had a situation of selling a rental property and two lots, where the rental structure sat on one of the lots and that was sold separate from the empty lot. We had to do some fancy dancing to get that empty lot to show up on PART I. But we did it. Also discovered then that it made no difference in the bottom line either.

But I do agree that there may be a program issue. It could also be a case where the rental was incorrectly set up in the program from the get-go too. But like I said, I've not taken the time to research it myself.

 

Level 2
Apr 18, 2022 11:46:14 AM

Carl,

 

Apparently I didn’t see the “Rental property sold” at the bottom of the page where rental income and costs are reported. 
click on the rental was sold, fill out correctly  and Form 4797 will populate.  This only took me 4 days!!!  Lol