sale of rental property

[joepkane]

My client sold a rental property he has owned and depreciated since 2008.  My question is, do I have to reduce the cost basis by the depreciation he has taken on the unit and improvements for the last 11 years?  I believe he does but I am trying to find out if there are any deferrals of gain that are available to him.  I assume the gain on the sale is all ordinary income.  I believe I need to complete form 4797. Is this correct?

Thank you for your help?

Joe Kane

[sjrcpa]

This is a public forum. REMOVE YOUR PHONE NUMBER!

[TaxGuyBill]

What software are you using?

The program should handle all of the taxation of the sale.  Unless the rental was sold in a 1031 Exchange, there is no deferring of any of the gain.

[abctax55]

"....I assume the gain on the sale is all ordinary income. "

Wrong assumption.

[IRonMaN]

But the 4797 is a good start.😁

[BobKamman]

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