Enterable 4797 cost or basis-a the adjusted basis of this property exceeds the sales price. Only gains are allowed here. how to report 20k loss on rental sale?

[se2012-]

How do I report the $20,000 loss on the rental sale?  It keeps deleting the sale because it wasn't a gain. I have depreciated the asset over the years and have included that in my figures .

[Phillip1]

Losses from rental properties are deductible as ordinary losses. This should be reported in Part II of Form 4797. You are reporting the sale in Part III which is only used for gain transactions.