This is a huge thing you're trying to do, if there's anyway you can leave it for the night and come back to it, I'd recommend it.

It isn't really that much work to delete and re-enter the transaction, remember to prorate the land and the building-they're reported as separate items on the 4797, but come together again on the Schedule D. The sales price of the land plus the house get added and carried over to Schedule D.īut that's really moot-you should be able to enter it as a sale of a depreciable asset in Turbo Tax and it should come out right, according to your 1099-S and your allocation between land and building. Those have to be separated because you can't depreciate land. Line 23 is the adjusted basis, and that subtracted from the sales price gives you the gain. I used a number that's probably not exactly yours, since I don't know when in 2007 you purchased it. I separated the sales price into land and building based on the purchases, and got $185,610 on line 20, and then on line 21 goes the sales price minus whatever you depreciated it at.

If by line 20, you mean the 4797, I put only the building, because that's the Sec. So when I did it, I got a gain of about $70k on the building, but I estimated the depreciation. Where I am confused is that I am not sure whether to count this as 1 sale (building and the land combined) or 2 separate sales (building and land), and how this relates to 'Part I' of form 4797.Īny help would be greatly appreciated! Thanks! Do I put the original cost of the building and land plus the fee's associated with the sale? Or is it just the building value (at time of purchase, plus associated fees). My questions is what do I put for line 21. No improvements were made to the property during this timeįor line 20 (of form 4797) I put 251,000. Depreciation over the 6+ years: ~$34,000 Fees associated with sale of the property: $13,500 It was used as a rental property the entire time and was never owner occupied. I am trying to figure out how to fill out form 4797 for the tax year 2013.

1065 example