<Solved> Re: I think I have found a bug in Form 4797 (sale of rental property) am I missing something

[GratefulDead77]

Line 2 contains the land gain for a sale of rental property

Line 32 contains the gain for the building including recaptured depreciation

Line 6 should be a straightforward transfer of line 32

Instead, Line 6 is the sum of Line 2 and Line 32

Line 7 then adds Line 2 to Line 6 effectively doubling the land gain on this sale

It is possible I'm not understanding something, I'm a rank beginner with rental property sales, but this looks like a bug.

<<<solution>>> look at my last comment.

[ErnieS0]

Line 6 of Form 4797 should not include the gain from line 2. The sale information may have been entered incorrectly with the land entered twice (or omitted from the sale). Asset purchase and sale entries are done differently in TurboTax.

In the purchase area, TurboTax subtracts the land from the cost. In the sale, you have to divide the amounts and report the structure (without land) under Asset Sales Price and the land under the land sales price.

You can contact a Tax Expert who can look at your entries.

[GratefulDead77]

Thanks for getting back, but your answer restates what I did.  The land sale information from line 2 is correct.  The building sale information from line 32 is correct.  What is happening without any intervention on my part is that line 6 is the sum of line 2 and 32 and not just a transfer from line 32.  There realistically is nothing I could do to make this happen but I can certainly fix it with an override.

[GratefulDead77]

Ok, I deleted the Enterable 4797.  Voila everything worked.  Even deleting the real estate sale and starting over (twice) and even entering correct values in the Enterable 4797 had no effect.  Apparently there is some trash that kept on screwing up the results.  Perhaps if you enter everything perfectly the first time there would be no issue, but there seems to be some sloppy code here that doesn't clear everything out.

[taxneophite]

I sold a tractor.  The business use varied over the years.  I know the average historical % business use of the asset.  Hence I can generate the correct values for Lines 20 thru 25 of page 2 of form 4797 but cannot find a way to enter it step by step.  Is there a way to generate an enterable 4797 page 2 that links to Form 4797 page 1 and delete the other 4797 page 2 generated by step by step?  Thank you.

[AmyC]

For the online version, you are entering the tractor as sale of business or rental property. This pops up the boxes for you to enter purchase date and price, depreciation taken, sale price and sale date. This should cover everything you need. You said you have the depreciation information.

Only the desktop version has a forms mode where you can enter more things. However, it makes the accuracy guarantee null.

@taxneophite