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Sale of Rental Property

BarryA
Level 1

I have a Client (Taxpayer & Spouse) who have a rental property in Pennsylvania. The taxpayer died in April 2019. The rental property was sold from his estate at the end of Aug. 2019. I have reported the rental activity thru August on the Schedule E. How do I remove the rental property from the return to not trigger a gain or loss on disposal?

Is the sale of the rental property reported on the Form 1040 or in the estate return?

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Accepted Solutions
BobKamman
Level 15

If it was just in his name, the rental activity from April through August would be reported on the Form 1041, with the sale.  If half was sold by the estate and half by the wife, then she would report all of the income and expenses through April, and half through when she sold her half.    They were Pennsylvania residents, right?

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2 Comments 2
sjrcpa
Level 15

How was title to the property held? Apparently not tenants by the entirety or joint with right of survivorship if it was sold by his estate.

The more I know, the more I don't know.
BobKamman
Level 15

If it was just in his name, the rental activity from April through August would be reported on the Form 1041, with the sale.  If half was sold by the estate and half by the wife, then she would report all of the income and expenses through April, and half through when she sold her half.    They were Pennsylvania residents, right?