Sold Rental Property - where to put assets on Form 4797

Forum|Forum|4 years ago
March 25, 2022
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I sold rental apartment building and had several individual assets. Land I allocated to Form 4797 Part I, the Building itself I allocated to Form 4797 Part III 1250. Where would I place the individual assets that were included in the sale of building. Those items were Appliances, Stove, Carpet, Improvements, Refrigerators. Do I allocate those items to Form 4797 Part III 1250?

If I place them in Part I, the balance due is lower compared to if I place them in Part III 1250. I currently have them in Part III 1250, however I looking to confirm if I assigned them to correct section.

I depreciated those items on Form 4562 over the years and recaptured what I needed to, just unsure which Part I should place them on Form 4797.

Thank you.

TurboTax Home & Biz Windows

ColeenD3

You would not be adding these to 4797. Allow the program to do it. You will be asked questions about each asset that tells the program how to handle it.

The appliances are Section 1245 property.

Section 1245 property. This type of property includes tangible personal property, such as furniture and equipment, that is subject to depreciation, or intangible personal property, such as a patent or license, that is subject to amortization.

Section 1250 property - depreciable real property (like residential rental buildings), including leaseholds if they are subject to depreciation.

The most common examples of §1250 property are buildings and ..... deck, shingles, vapor barrier, skylights, trusses, girders, and gutters. ... of the cost of construction of the building and depreciated over the life of the building.