Joel V
Level 3
‎10-16-2023 04:11 PM

I am on the Schedule E property disposition page and am trying to categorize the sale of the property as a 1250 sale, however, the only options in the dropdown box on line 2 in part 1 are 1231, 1252, 1254 and 1255. This seems to be messing with my depreciation recapture. How do I get the sale to flow through properly to part III of form 4797? Thank you. 

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IntuitRichard
Employee
Employee
‎10-16-2023 04:23 PM

In most cases, a rental asset would be entered on the asset entry worksheet and the disposition information would be entered there.  This should allow for 1250 recapture to be calculated correctly and allow the disposition to flow to part III of the 4797. 

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BobKamman
Level 15
‎10-16-2023 04:29 PM

Section 1250 property is also Section1231 property.  Start with that and the program figures out what assets come under 1245 or 1250.  

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