I have a client who sold their rental property at a loss to a related party. I understand that they cannot take any losses on this sale. When I enter the info on the Disposition Worksheet Proseries wants to take the losses on 4797. I feel that this "disposition" should be reported on their Return, but there doesn't seem to be a clean way to do this without overriding several items, which prevents e-Filing.
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In the Disposition section of Asset Entry Worksheet, there is an entry line Asset gain/loss basis, if different Can that be used to prevent the loss from flowing to F4797?
Thank you for your response. When I adjust the Asset gain(loss) in this section it gives me an error message about the land must be included in the basis. To zero out the loss I have to reduce the basis below the land cost.
Do you have an amount in Land included in Cost ? If yes, what have you checked in Disposition section for Report Land Separately? Could that be causing the error?
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