HOW TO RECORD SALE OF RENTAL PROPERTY ON FORM 4797

[joe7230]

I split the gross sales amount and cost into Land and Building.  I recorded the sale of the land on Part I of

the 4797 and the sale of the building on Part III. The qualified dividends and capital gains tax worksheet

has $11,818(which is the correct tax amount) on line 24 of that worksheet but reduces the amount to 

$1069 on line 25.  I cannot figure out why this is happening.  HELP!

[Jim-from-Ohio]

i always report a sale like this on the asset entry worksheet.. the program then populates the 4797, etc properly. 

[joe7230]

I tried that but couldn't get rid of the depreciation for the property(automatically plugged it in from previous years) without overriding it which then disallows e-filing

[Just-Lisa-Now-]

What do you mean "get rid of"?

[Accountant-Man]

I also only use the asset worksheets. I usually allocate some of the sales price to any personal property that might have some basis left, making them zero gain or loss, and the rest to the real estate.

[Jim-from-Ohio]

exactly how I do it.. i make the small assets break even and the main gain or loss on the real estate

[joe7230]

the schedule E worksheet kept plugging in a depreciation amount(the property had been rented for

ten years).  the only way I could eliminate the depreciation amount was to override it to 0 whcih then disallowed e-filing.  

[Just-Lisa-Now-]

Well, prior depreciation has to be recaptured...so it is part of the sales equation. 

Where did it keep "plugging it into"?

[Accountant-Man]

Enter days rented.