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How do you tell ProSeries that a loss disposition of Sec 1250 property does not qualify as an ordinary loss on Form 4797?

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Level 12

@margowalkercpa wrote:

It is inherited investment property


If you ask a question, it helpful to have as much detail as possible.  What does "investment" property mean?

If it is a rental, the sale should be an ordinary loss on Form 4797.

If it was not a rental, the sale should be a capital loss on 8949/Schedule D.

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Level 12

Why does it not qualify as an ordinary loss?

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It is inherited investment property

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Highlighted
Level 12

@margowalkercpa wrote:

It is inherited investment property


If you ask a question, it helpful to have as much detail as possible.  What does "investment" property mean?

If it is a rental, the sale should be an ordinary loss on Form 4797.

If it was not a rental, the sale should be a capital loss on 8949/Schedule D.

View solution in original post