Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 09-15-2009, 01:33 AM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
How does a taxpayer report a loss on sale of a rental property on their tax return?

The loss on the sale of rental property is reported on Form 4797, Sale of Business Property and this loss is treated as an ordinary loss.

A loss from the sale of a rental property is tax deductible as an ordinary loss. Ordinary losses are deductible in full against your ordinary income such as your wages, self-employment income and other portfolio income earned by a taxpayer.

It is worth noting that a gain from the sale of a rental is taxed as capital gains, whereas a loss on the sale is treated as an ordinary loss. This is one IRS tax code that has actually benefited taxpayers!

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Sale of business property mlci Capital Gains 0 03-11-2009 07:30 PM
Deduction of property used in rental property mhrobinson3 Rental Real-Estate 4 01-20-2009 11:57 AM
How much US tax do I have to pay on the gain on sale of foreign property in the UK? aoraha C-Corporation 0 08-05-2008 06:31 PM
Capital Losses on the sale of Second home turned into Rental Property? emc2005 Capital Gains 1 07-30-2007 05:52 PM
Can u write off a loss on sale of home? mongrel Capital Gains 1 01-27-2007 12:01 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.