How is line 2f in form 4797 calculated? This is for the sale of a rental property.

[SweetieJean · Accepted solution]

Line 2f = Cost or other basis, plus improvements and expense of sale.

Purchase price

+ Purchase costs (title & escrow fees, real estate agent commissions, etc.)

+ Improvements (replacing the roof, new furnace, etc.)

+ Selling costs (title & escrow fees, real estate agent commissions, etc.)

[sissybell]

Thanks very much, SweetieJean!  Got it now.

[thminor]

This calculation is way higher than I would have expected.  My original purchase value is $116,000 from 2009.  My property sale price was $140,000 on 11/6/2017 with $3638 depreciation.  Yet the calculation shows a $21,906 loss.  On form 4797, it shows in line 2f a cost or other basis of $176,183 for structure and $19,938 for land.  I have no idea where these numbers are coming from.  What is this calculation being based on?  What do I need to edit to represent the actual numbers?  Thanks.

[Carl]

What are you carry over losses?Remember, your carry over losses are realized (actually deductible) in the year of sale.

[thminor]

I don't have carry over losses - or none that I entered into the software.  Where would this be calculated?

Thanks!