What is the Proper way to input sale of rental property?

Forum|Forum|5 years ago
March 17, 2021
3 replies
31 views

Hey all,

I have a client who qualifies for section 121 as she sold her rental home (she owned for 10 years and converted to rental the last three.

I am not sure how to show this in the system as I have been getting conflicting info from other pros.

I have a sale of home worksheet and a schedule E for rental side of it.

i was told i would need to use form 4797 as well to show depreciation recapture but i am not quite sure how to do that without inputting all information again and it feels as if I'm creating a duplicate of the property.

Thanks in advance for your time.

ProSeries Professional

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P

PamC

Level 6

I go to the depreciation schedule for the rental property and enter the General Disposition information then scroll down and answer questions in the Sale of a Home section.

T

TaxGuyBill

If I remember correctly, ProSeries doesn't do it correctly.

It is SUPPOSED to be reported on Form 4797, but ProSeries puts it on Form 8949/Schedule D.

The net results are the same, but it is reported on the wrong form.