Question

Rental Property Sale

Forum|Forum|6 years ago
April 20, 2020
1 reply
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Hello,

I sold my rental property and received a 1099-S. I entered the sale of the rental property, and Turbo Tax generated the loss based on expenses and passive carry overs. However, should this also generate a schedule D to show capital gains loss?

Thanks!

T

TerryA

Employee

If the property sale resulted in a loss - and given there were no other transactions on Form 4797 - then it would be on Form 4797, line 18b, and from there to Schedule 1, line 4. It winds up as part of Form 1040, line 7a.

A Schedule D is not involved in that kind of transaction.

D

droneguyAuthor

Terry,

Thank you very much. So, just so I understand, if the property sale was a gain, would it then be required on Sch D as capital gain or would the Form 4797 cover that gain as well on line 7a?

Thanks

T

TerryA

Employee

That's correct. Only because it was a trade/business loss it never wandered into Schedule D-Land. A gain would have sent it to Schedule D from the 4797 line 7.