Form 4797

[MrD1]

Looking for someone to walk me through reporting sale of real rental property by LLC.  I'm missing something and not getting depreciation recapture.  Don't see a way to split land from improvements.  I'll gladly pay for the help.

[George4Tacks]

https://proconnect.intuit.com/community/form-8949/help/entering-a-sale-or-disposition-of-assets/00/3...

might help. Are  you entering through the depreciation screen? How many assets? Are you in the Partnership module, or doing it in the Individual module? 

[MrD1]

Hello, George4Tacks.  Thank you for the tutorial info.  I'm using the Dispositions screen (19) in the Partnership module.  I've filled out as specified in the instructions.  It might be at the 4797 screen that I'm doing something wrong.  I've entered -1 because I'm assuming that indicates depreciation should be recaptured.  Apparently the system is not picking up the depreciation from former years when I enter that.  I've also tried entering the accumulated depreciation on the Depreciation Recapture Amount line, thinking that that would pick it up.  In neither case does the K-1 appear to reflect recapture of depreciation.  And the form 4797 that is generated records all information in Part 1 rather than offering the capability to split the asset into "raw land" and "depreciable structure" as I had expected.  Also, the K-1 indicates a "UBIA of qualified property".  Not sure this is legitimate for this asset sale (rental  home).

I'm not an accountant, so I'm not sure I'm understanding these entries.  I was trained by my CPA in the use of Lacerte years ago.  However, he is now deceased and this is a new form for me.  Any help you can offer would be much appreciated.  I'd be happy to pay for your help.

Mike D.

[George4Tacks]

I would first suggest you do chat with support. They can look at the file and help you get things in the correct spot. I find that the software generally gets you the best results when you enter the sale through the dispositions screen. 

If you could list a generic version of what you are starting with, that would help. e.g. Selling Improved Real Estate for 1,000,000 - There are 6 assets = Building, Land, New Roof, HVAC, Paving, Remodel - All assets are prior year assets,....

[MrD1]

Thank you.  Pretty simple disposition....single family home purchased in 2014 as rental for $88,214 including upgrades to prepare for rent (carpet, appliances, etc).  Sold in 2020 for $242,000.  Straight line depreciation over 27.5 years ($3,207/yr for 6 years).  Land value in 2014 - $56,900.  Land value on sales date - $107,700.  Sales costs $13,148. Seems like this should be pretty straight forward calculation of capital gain, but I'm not seeing what I suspect I should relative to depreciation recapture.  And not sure if QBIA should apply.

Mike D.