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Old 10-08-2018, 08:32 PM
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8949 or 4797: Which form (if any) do I need to file for the sale of a rental property?

I sold a property last year that I originally lived in and then rented out. It sold for a net gain (due to previous depreciation--that really turned into unallowed loss).
I qualify for the special exclusion (lived in 2 of 5 years) so I don't need to pay tax on the net gain.
In publication 523, in one section it says I don't have to report the gain. In another section, it states that I still need to report the net gain if I received a 1099-S for the transaction (which I did)...even if I have no taxable gain.
Do I need to report it? If so, do I use 8949 or 4797? On both of those forms there's not really any place to state that I qualify for the special exclusion...so where would I put that? Thanks for any help.



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Old 10-10-2018, 12:26 PM
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I sold a property last year that I originally lived in and then rented out. It sold for a net gain (due to previous depreciation--that really turned into unallowed loss).
I qualify for the special exclusion (lived in 2 of 5 years) so I don't need to pay tax on the net gain.=========but you must pay tax on the unrecaptured sec 1250 gains. once you used the pty as rental, then, you must recpture sec 1250 depreciation expense . The unrecaptured section 1250 gain is a type of depreciation-recapture income that is realized on the sale of depreciable real estate. Unrecaptured Section 1250 income is taxed at a 25% maximum capital-gains rate. So you must file form 8949 and Sch D, and form 1040 line 19 and form 1040 line 44




In publication 523, in one section it says I don't have to report the gain. In another section, it states that I still need to report the net gain if I received a 1099-S for the transaction (which I did)...even if I have no taxable gain.
Do I need to report it?=============it depends: I guess in your case , since you sold it as residential, then, yo Do not report the sale of your main home on your tax return unless You have a gain and do not qualify to exclude all of it:You have a gain and choose not to exclude it, or You have a loss and received a Form 1099-S.


If so, do I use 8949 or 4797? On both of those forms there's not really any place to state that I qualify for the special exclusion.===========..as mentioned above.



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