TP PURCHASED BUSINESS PROPERTY IN 2019 AND SOLD IN 2022. THERE IS A GAIN OF THE SALE OF $68967 AND IS REPORTED ON FORM 4797 WHICH CARRIES OVER TO THE SCHEDULE D. SHOULD THE GAIN BE TAXABLE?
Sorry, I didn't catch myself with the caps. The form 4797 and it shows the gain but not taxing it.
Gotcha, I just thought that due to it being a gain it would be taxed regardless. This TP has a Sch C profit of $1400 and a NOL from the previous year of $7700. That's probably why it's not taxed but I was doubting myself. Thanks for the input, greatly appreciated.
Per review of the history on this TP's property it was never put into depreciation, so there was none of the gain was due to depreciation recapture.
If it was an asset placed in service for business use in a prior year, the basis would be reduced by the depreciation allowed or allowable. Sounds like you have a mess on your hands. 😞
You have clicked a link to a site outside of the Intuit Accountants Community. By clicking "Continue", you will leave the community and be taken to that site instead.