Form 4797 Line 21 (Cost or basis plus expense of sale):

[DKSAM]

How does Turbo Tax calculate this line item?  I want to know what specific places on any of the forms it grabs the numbers from as it is not calculating correctly.

e.g. I can't find where to enter in the costs associated with the sale of my rental real estate

[JohnW152 · Accepted solution]

Line 21 of Form 4797 is equal to the cost or other basis of the property,

• PLUS expenses of the sale
• MINUS the amount of any enhanced oil recovery credit or disabled access credit claimed 

It's not adjusted for any items entered on line 22, depreciation or depletion allowed or allowable.

Please see the IRS' Instructions for Form 4797 for more information.

[DKSAM]

Thanks John, much appreciated!

So one follow on question- How do I enter the selling expenses?  I can't find anyway to do that.

Thanks again, Doug

[SantinoD · Accepted solution]

The qualified selling expenses can be added to the cost basis of the home. So when you enter the cost basis of the property, you add the selling expenses (and any other costs that can be added to the basis) to the original cost basis and enter that amount in the box for adjusted cost basis in TurboTax. 

[GeorgeM777]

On the screen Sales of Business or Rental Property is where you will enter the expenses associated with the sale.   To access this screen, in TurboTax online, from the Wages & Income section, scroll down  to Other Business Situations, and select Sale of Business Property.  

In TurboTax CD/download, from the Wages & Income screen, scroll down to Business Items and select Sale of Business Property.  Enter your information.  

@DKSAM

[DKSAM]

Thank you, very helpful!

[DKSAM]

Thank you!