Re: How do I report a loss on abandoned l/h improvements as an ordinary loss on Form 4797 Part II for an S-Corp?

userlori · ‎01-26-2022

I have assets set up on the depreciation screen and have entered a disposition with zero proceeds. The loss shows as a 1231 loss on part I of the Form 4797. I can't find a way to have it identified as abandoned property to show as an ordinary loss on Part II of the Form 4797.

George4Tacks · ‎01-26-2022

Are you working with a 1040? If not, what type of return? What depreciation code (method) was being used?

Look at the 4797 page 1. You state it is a loss. Does it end up in Part II line II? and then where does it show up?

Answers are easy. Questions are hard!

Loripat · ‎01-26-2022

I am working in 1120S. The loss shows on page 1 part I of 4797 and flows to line 7 and then to K-1 as a 1231 loss. the depreciation code is macrs 39 yr sl.

George4Tacks · ‎01-26-2022

Have you followed where this ends up on the 1040?

Where do you think it should "land"?

Answers are easy. Questions are hard!

Loripat · ‎01-26-2022

I see it now. I had not followed through to 1040. Thanks for the assistance!