Sale of business Property

[Ron117]

I recently sold an investment property and on form 8582, unallowed losses were $320,000.  Does this get reported on form 4697 and which line? Ron H.

[JamesG1]

Do you mean IRS form 4797?

It sounds like it a sale of investment property that would be subject to capital gains rates and reported on Schedule D of the Federal 1040.  

What is the source / nature of the unallowed losses?

Enter where do I enter investment sales in the magnifying glass in the upper right hand corner of the screen. 

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[Ron117]

I was referring to form 4797 to report the sale of the property. I also report a negative $25,000 on Schedule 1, since this is the maximum allowed on  Schedule E on form 8582.  form 8582 has unallowed losses on worksheet 5, total on column a and c. I also report depreciation on form 4562. My major question is if I can report the unallowed loss of $320,000 on form 4797 and what line does this loss get reported on. ron117

[ThomasM125 · Accepted solution]

Since you are referencing passive losses and schedule E, I assume the property is rental property, which is different from investment property. If so, it will show up on Par II, line 10 of form 4797 when you report the sale. To populate form 4797 in TurboTax, you need to go to your rental section and edit the assets and report the sale of the property there.

[Ron117]

Do I need to complete Schedule D and 4797?

[DaveF1006 · Accepted solution]

Yes, but the program will generate those forms automatically for you if it is entered correctly.

[sabrina_butler]

I can't get this to work and called Intuit and he said it's a bug in the software.

I have no property to edit but the amount of sale amount it there in the column.  Click to edit it and it's blank. 

In the forms, I can't delete them, and they are named "copy" not the property name,  but the editable 4797 deleted, but changing that didn't do any good anyway.

Can you help me?  I'm about ready to start my taxes all over gain. It's a mess and should be so simple. 

Thanks in advance! 

Sabrina

[DianeW777]

Please clarify what property you are trying to sell and specifically what the assets are.

1. Is it a rental of a home?
2. Is it the sale of a business?
3. Do you have many assets?

We can help with more details about your sale and TurboTax can handle it if the entries are entered correctly.

@sabrina_butler