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Sale of rental unit

momma1
Level 3

What forms are used to recapture depreciation form a rental unit that has been sold. Also is capital gain calculated on the value of the unit at the time of sale or the listed cost of rental unit that was used in depreciation calculations on Schedule E.  New Client would like to pay estimated tax on possible capital gain before end of tax year.  Please advise on how to calculate and forms to be used to  achieve these calculations.

Thank you

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1 Best Answer

Accepted Solutions
IRonMaN
Level 15

Check out form 4797.


Slava Ukraini!

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9 Comments 9
IRonMaN
Level 15

Check out form 4797.


Slava Ukraini!
dkh
Level 15

This seems to be something you don't normally deal with when preparing taxes.  I suggest you either do some research to understand how to report the sale properly or send your client to someone who does understand.  No disrespect meant.   

PATAX
Level 15

@IRonMaN her question about the gain calculation has me shaking my head in disbelief... This is something every tax preparer should know before they start preparing returns... This is the reason the i r s wants to regulate tax preparers who do not have credentials and have them pass an exam... Just my opinion

PATAX
Level 15

@dkh we are on the same wavelength.....

qbteachmt
Level 15

"Also is capital gain calculated on the value of the unit at the time of sale or the listed cost of rental unit that was used in depreciation calculations on Schedule E."

I'll give this poor person a clue...

Neither.

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Accountant-Man
Level 13

Please clarify this question:

<<Also is capital gain calculated on the value of the unit at the time of sale or the listed cost of rental unit that was used in depreciation calculations on Schedule E>>

If you don't know this, then you need to go to Turbo Tax. This site is for professional tax preparers. If you are a professional, you need to ask for help to learn the laws.

** I'm still a champion... of the world! Even without The Lounge.
PATAX
Level 15

@Accountant-Man @qbteachmt that is what I was referencing....

Just-Lisa-Now-
Level 15
Level 15

This is a multi step process, not a quick simple answer.

You may want to google  'ProSeries Selling Rental property' and look at the various posts that come up, you may be able to piecemeal your way through the process....I dont see an actual Intuit Article for this, like they have with a 1031 exchange.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
momma1
Level 3

Thank you so much for the information.  I appreciate your help. I feel you are a great asset to the Intuit Community.