Should I use Form 4797 or Schedule D for the sale of residential rental property that I sold at a loss? Why?

I bought 5 rental properties in three different cities in July 2011, with cash, at a total of $203,000 (low income rentals).

I applied depreciation to each property each year doing my taxes in TurboTax.

I sold each of the properties at various times throughout 2016 at a total loss of $96,281 (real estate sucks).

They were never used by me for anything but rentals ,but they went unrented for various periods of time.

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1 Best answer

New Member

Jun 4, 2019 1:36:25 PM

Any time you sell depreciable property, Form 4797 is required to prepared. Tax law requires to recapture all of depreciation taken as income in the year of sale. The law applies whether you claimed depreciation or not.

LOL..nearly forty years in that activity that "sucks"

I sold my rental property. How do I report that?

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