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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?
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Sorry, I didn't catch myself with the caps. The form 4797 and it shows the gain but not taxing it.
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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.
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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.
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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. 😞