Client sold house with no gain taxable......had business office with depreciation taken for some 20 years just exactly how do I report this .....do I use 4797 and then to schedule D or can I report on only schedule D..... and if so how do I report if on only schedule d.....confusing with new changes since 2008 and now in 09
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Form 4797
I used Form 4797 when I sold my previous home and had recaptured depreciation on my home office.Originally posted by mona l View Post -
Like taxxcpa said--use part 1. Form 4797 and carryover to Sch. D.Originally posted by taxxcpa View Post
You only have to recapture the depr. taken after May 6, 1997.Comment
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And only recapture to the extent of realized gain, not more.Originally posted by Gene V View Post
MaribethComment
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It's part III of 4797 and you recognize Unrecaptured 1250 Gain. You don't recapture it.Comment
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Actually, you don't have to use Form 4797 at all, just report the sale on Schedule D.
Part of Home Used for Business or Rental
If the part of your property used for business or to produce
rental income is within your home, such as a room used as
a home office for a business, you do not need to allocate
gain on the sale of the property between the business part
of the property and the part used as a home. In addition,
you do not need to report the sale of the business or rental
part on Form 4797. This is true whether or not you were
entitled to claim any depreciation. However, you cannot
exclude the part of any gain equal to any depreciation
allowed or allowable after May 6, 1997. See Depreciation
after May 6, 1997, earlier on this page.
See example in Pub. 523Comment
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agree with gene
i was taught that for the sale of a home with depreciation for office in home, you decrease
the basis by the depreciation taken. so, it is possible that there would be a gain. and it would go on schedule D or not at all.Comment
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