TaxGuyBill
Level 15

You need to use a make-believe Basis.  Use a Basis of $405,000 (sale price, plus total depreciation) for purposes of the disposition.

You can enter that in the disposition area of the Asset Entry Worksheet  where it says "Asset gain (loss) basis, if different".


An alternative is to ONLY enter the sale date (no sale price) on the Asset Entry Worksheet, and enter the same numbers on the "Enterable 4797" (Basis of $405,000, sale price of $370,000, with total depreciation of $35,000).

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