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When a rental property is sold, supposed it is sold with 1,200,000. Does it need to split two parts on Form 4797? Supposed the price split as below:
1. ) Land selling price: 400,000
2.) Building selling price: 800,000
Where to obtain the above data? Does it search from final settlement statement, or from the county website which you pay property tax?
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No.
My guess is you may have more questions.
Answers are easy. Questions are hard!
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Yes, although in many cases it won't make a difference.
https://www.irs.gov/instructions/i4797#en_US_2022_publink13087td0e531
An official appraisal is best. But if that is not available using the PERCENTAGES from the county assessments is fairly common.
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Thank you for your input. Based on the instruction link you sent. The selling price should be split to two parts: Land and building.
Land appreciation as a capital gain, need to be entered at Part1 line 2 on form 4797
The building appreciation as capital gain, need to be entered at Part III line 20
