Related person sale loss

[Premier]

I have a client who is looking to sell residential rental property to a related person in 2016. I understand that any loss is not deductible and any gain is taxed at ordinary tax rate vs capital gain rate. My questions is on which form(s) do I indicate that the sale is between related persons?

[mactoolsix]

Form 4797 Part II

[taxea]

Form 4797 Part II

Mac isn't that for a business sale.

google: Sale of Residence - Real Estate Tax Tips - IRS.gov
Don't believe the don't have to report the sale, if you don't the IRS will ask for documents. Report on Sch D and if a loss, back it out

[taxmom34]

selling residential RENTAL property, isn't rental property the sale of a business? I'm thinking you can't sell on an installment sale to a related party.

[mactoolsix]

Mac isn't that for a business sale.

Form 4797 is used for the sale of depreciable rental property. Since it is a related party transaction, the sale must be reported as normal income (no capital gain treatment) on Part II

TAXMOM - yes, you are correct, you cannot use an installment sale with related party transactions.

Mike

[taxea]

Form 4797 is used for the sale of depreciable rental property. Since it is a related party transaction, the sale must be reported as normal income (no capital gain treatment) on Part II

TAXMOM - yes, you are correct, you cannot use an installment sale with related party transactions.

Mike

Mike...my bad...I missed the "rental" part of the post. Must have read it before I had my coffee.