Great information, thank you all. Here's my take away so far, hope it is right:
Re: AmeliesUncle "But that isn't your situation so it all goes on 8949."
Yes, I was talking about the subset of the property being the thing that forces the 4797. Sounds like you are confirming that if the entire property was always used for only one purpose at a time then no split is needed so no F4797 is needed. This is a very key issue for me and I appreciate this clarity. Thanks.
Re: tagteam "Could @khopton use Line 24z for this purpose"
AmeliesUncle "You could (or a negative number on line 8), but I would file the Schedule E (with no rental days)."
I suppose that entering the PALs on line 24z with "Susp pass act loss" next to it would be an anomaly that might make my return look like it needs to be examined. At the same time, one of the key criteria for going all 8949 without 4797 is that there is no business entity in 2022 and that seems incongruent with filing any Schedule E. It sounds like you all see the zero-day Schedule E as a fairly clean solution as it would land on the IRS desk even if it is not so clean interacting with TurboTax. Right?
Re: AmeliesUncle "When you set up the rental, it will ask about prior passive losses, so I think that should produce the 8582."
So, if I have this right, the return should flow like this:
- Suspended PALs -> F8582 -> Zero-day Schedule E -> Schedule 1 Ln 10 -> F1040 Ln 8
- Gain,Exclusion -> Home Sale Worksheet -> 8949 -> Schedule D Ln 10
- Depr Recapture -> Adjusted Basis of Home Sold Worksheet Ln 10 -> Home Sale Worksheet Ln 30 -> Unrecaptured Section 1250 Gain Worksheet Ln 12 -> Schedule D Ln 19
- And then Schedule D -> Schedule D Tax Worksheet (which discerns the rate split between CapGain and Regular/Recaptured) -> 1040 Ln 16
And everything mentioned above gets included in the filed return even if I have to print it?
Again, thank you for your insights and ideas.
