is it correct that Sale of business property appears on both schedule 1 and schedule D?

[faq4me]

Sold rental property that we held in LLC. Sale was issued as K-1 resulting in generation of form 4797, which fed into and populated schedule 1. The gain also reports on Schedule D, resulting in doubling amount of reported income.

Did the K1 also feed into Schedule D? How do we address this income not being reported twice?

[DianeW777]

It is not likely duplicated.  Some depreciation is required to be recovered as ordinary income when there is gain on the sale of the assets. The gain on each asset that is not the home itself would be recaptured on Form 4797 and carried to Schedule 1, which will carry to your 1040.

For the residential rental home itself or any other 27.5 year property, if there is a gain, will be carried to Schedule D and then also to the 1040.  Keep in mind that this gain will require tax computation on either the Schedule D worksheet or the Qualified Dividends and Capital Gains Worksheet. This is how capital gains tax is calculated on your return.