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Eshka
Returning Member

why is one of my assets for rental property treated as ordinary gain or loss insntead of attaching to the existing rental?

this rental house does not qualify as a trade or business and should be treated as capital gain.  I had 3 other assets with this rental and they were reported together in part III as capital gain, while the 4th asset (2018 improvements) was reported on 4797 in Part II.  This has never happened before.

this is money I spent on the rental and should have been added to the basis.  is this a turbo tax glitch?  

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2 Replies

why is one of my assets for rental property treated as ordinary gain or loss insntead of attaching to the existing rental?

If the Asset was placed in service during 2018 then when you were entering the asset you must have indicated that you either sold or disposed of the asset during the year.  Form 4797 Part II will show the date the asset was placed in service and the date sold.  Those entries can only be made by the user of the software in the Asset entry section for Rentals and Royalties.

Go back through the Asset section of the program and either delete the asset and re-entry or remove the selections you made indicating the asset was sold.

Anonymous
Not applicable

why is one of my assets for rental property treated as ordinary gain or loss insntead of attaching to the existing rental?

each asset is treated separately 

 

because you bought and sold it in 2018, it was held less than 1 year.  property sold held less than 1 year results in ordinary gain or loss 

 

only items held more than 1 year get reported in part III

 

 

see the instructions for the form

 

you may also want to review how you allocated sales proceeds to this item since it was held such a short time

 

don't know amount involved 

 

 

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