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sale of rent house on 4797 Part 1 shows 0 for loss

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Level 2
last updated ‎June 23, 2020 3:06 PM

Sale of rent house on 4797 Part 1 should show loss of $10,000, instead shows -0-

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Level 2
last updated ‎June 23, 2020 3:06 PM

Just-Lisa-Now, thank you, thank you, thank you.  The key to the program doing the whole passive activity loss and loss on the sale of the rental property was that Box H on the Schedule E Worksheet.  That did it!  I guess I have never had a client in this particular predicament with the passive losses and sale combined.  Thanks again!

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Level 15
Level 15
last updated ‎June 23, 2020 3:06 PM

Did you sell it from the asset entry worksheet?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Level 2
last updated ‎June 23, 2020 3:06 PM

Yes

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Level 15
Level 15
last updated ‎June 23, 2020 3:06 PM

4797 Part 1 should show sales price, depreciation, cost basis and the end result...are you saying some of the figures are wrong?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Level 2
last updated ‎June 23, 2020 3:06 PM

I believe that is the problem.  By reporting it as sold on the asset entry worksheet, it lumps it into the passive activity loss limitations on Form 8582 line 1b, and puts -0- on the loss allowed on the 4797.  If I check the box for other passive activity exemptions on the Schedule E Worksheet, item G, it lets the loss show on the 4797, but then does not let the current year loss limitations on Form 8582 line 1b show, but has -0- there.  There should be a way to get the correct current year unallowed loss to show on the property, but still be able to report the loss on the sale of the property.

How do I do that?

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Level 2
last updated ‎June 23, 2020 3:06 PM

The 4797 shows the correct sales price, cost and depreciation but not the correct end result.

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Level 15
Level 15
last updated ‎June 23, 2020 3:06 PM

Be sure you've checked Box H on the Sch E worksheet


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Level 12
last updated ‎June 23, 2020 3:06 PM

What EXACTLY are the numbers showing up in columns (d), (e) and (f) on the 4797?

Do any of those numbers seem wrong compared with what you have on the Asset Entry Worksheet?

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Level 2
last updated ‎June 23, 2020 3:06 PM

d, e, and f are all correct, yet g shows -0-.  It should show a loss of 10,506.  

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Highlighted
Level 2
last updated ‎June 23, 2020 3:06 PM

Just-Lisa-Now, thank you, thank you, thank you.  The key to the program doing the whole passive activity loss and loss on the sale of the rental property was that Box H on the Schedule E Worksheet.  That did it!  I guess I have never had a client in this particular predicament with the passive losses and sale combined.  Thanks again!

View solution in original post

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Level 15
Level 15
last updated ‎June 23, 2020 3:06 PM

I think we've all been there ....one time! LOL  now that box is the first thing I check when a rental is sold!


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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