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Form 4797 - Depreciation Allowed or taken since acquisition

Fabrod
Level 2

I have a client who sold rental property and I was able to fill in the Disposition Worksheet with the Sales Price, costs and expenses but it does not let me include the depreciation.  Since this is the form that later populates the 4797, the column for the Depreciation allowed or taken since acquisition is left blank.  How can I populate that column.  Thank you in advance for your help.

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4 Replies 4
Just-Lisa-Now-
Level 15
Level 15

You need to use the Enterable 4797 if youre not going to use the Asset Entry worksheet from Sch E to report the disposal....

If you ARE using the Asset Entry worksheet, the Prior Depreciation box is closer to the top of the form.

enterable4797.png


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Fabrod
Level 2

Thank you so very much Lisa.  That was very easy to fill in.  But the problem that I have now is that when I go to my 4797 form, I have the gain for the sale in line number 6.  Shouldn't be on Part I number 2 - Sales or Exchanges of Property Used in a Trade or Business....?

 

Thank you again for your help

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Just-Lisa-Now-
Level 15
Level 15

I only do maybe one rental sale a season, so Im not fluent on which line should have what, but I just looked at one of my clients that we did a "what if" situation for him to sell a rental.

The 4797 Page 2 should break down the sale for you and the amount on Line 24 should move over to Page 1, Part 1 Line 6, Part 1 line 2 is empty.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Fabrod
Level 2

Thank you Lisa.  That works. I appreciate it.