The property gifted was held long-term - approx. $90,000 cost less approx. $30,000 depreciation. I will have a gift tax return done but I want to make sure there is nothing else to be reported on my 1040. Sch E assets are noted as disposed, but nothing flows to any other form - 4797 or Sch D.
You have a fairly complicated transaction here so I will provide some guidance:
Be certain to indicate under the Property Profile section that you 'sold' the rental as well as under the asset/depreciation section. In the asset/depreciation section mark that the rental was sold/retired and indicate that 'special handling is required'. The disposition should still be recorded on Form 4797.
Let me know if this helps.
Not sure. I read that f the 'sold' box is checked, the entire transaction is considered to be a fully taxable transaction and losses are not limited to passive activity rules. I think passive activity rules apply to my rental properties, so I did not check the 'sold' box. In the asset section, all questions answered as to acquisition and disposition dates, and special handling needed. I think I need to read up on passive activity rules - I don't think I can take a loss on my gift of close to $60,000. I'm just not sure if all this is reported correctly on my 1040.
You have a fairly complicated transaction here so I will provide some guidance: