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Old 03-26-2016, 07:20 PM
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sale of rental property

Hi, last year I sold a rental property for which I did not collect any rental income, do I need to report the income of the sale as a rental income? Thanks

Oscar



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Old 03-26-2016, 08:28 PM
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No; The gain on the sale of the rental house is reported on Form 4797 and Sch D. Residential rental property is section 1250 property, so Part III of Form 4797 must be completed. The gain calculated in Part III then needs to be entered in Part I of form 4797. The gain reported in Part I will then transfer to Sch D as a long-term capital gain. For property placed in service after 1986, all depreciation deductions allowable before the sale give rise to unrecaptured section 1250 gain. The portion of the gain that is unrecaptured section 1250 gain is subject to a 25% tax rate and must be reported in Part III of SchD. The capital gains rate of 15% will apply to the balance of the gain alsoyou need to report the income of the sale of the rental home, UNLESS you reported your rental income on your return , you need to amend your last year return and report it on Sch E of 1040 to report it on your 1040.



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Old 04-04-2016, 07:08 PM
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Hello

Hi There was a Loss on the sale, do I have to do the Part I and the 1250 section? for your help Thanks

Quote:
Originally Posted by Wnhough View Post
No; The gain on the sale of the rental house is reported on Form 4797 and Sch D. Residential rental property is section 1250 property, so Part III of Form 4797 must be completed. The gain calculated in Part III then needs to be entered in Part I of form 4797. The gain reported in Part I will then transfer to Sch D as a long-term capital gain. For property placed in service after 1986, all depreciation deductions allowable before the sale give rise to unrecaptured section 1250 gain. The portion of the gain that is unrecaptured section 1250 gain is subject to a 25% tax rate and must be reported in Part III of SchD. The capital gains rate of 15% will apply to the balance of the gain alsoyou need to report the income of the sale of the rental home, UNLESS you reported your rental income on your return , you need to amend your last year return and report it on Sch E of 1040 to report it on your 1040.



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