Author Topic: selling rental property  (Read 1359 times)

sdp

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selling rental property
« on: March 27, 2017, 12:05:36 PM »
hey there,
I am selling a rental property.  I have never done that before.  What irs forms do I need to fill out?  is it something that goes on my schedule E, or is there something else I have to do.

NoNonsenseLandlord

  • Bristles
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    • No Nonsense Landlord
Re: selling rental property
« Reply #1 on: March 27, 2017, 12:11:15 PM »
I believe the title company issues a 1099R.

Capt j-rod

  • Bristles
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Re: selling rental property
« Reply #2 on: March 27, 2017, 05:45:39 PM »
Keep track of all mileage, expenses, advertising, and anything else. When you close keep all the documents. If it sells at a loss, you will write it off. Otherwise you will have to claim the profits. I use a CPA, if you have an accountant then call and ask for any advice.


SeattleCPA

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Re: selling rental property
« Reply #4 on: March 31, 2017, 05:25:23 PM »
You're going to use a Form 4797 to report the sale. Both sides. Remember that you're basically selling all the stuff you've been depreciating and then the land, too.

https://www.irs.gov/pub/irs-pdf/i4797.pdf

As part of the gain or loss calculation, you'll going to need to recognize the depreciation you've taken and any selling expenses. E.g., if you bought the place for $100K and sold it for $200K, you don't have a $100K gain.

Rather, you need to add any deprecation you've taken to the gain. And you need to subtract any selling expenses you've paid from the gain.

E.g. if you have $20K of accumulated depreciation that means you have $20K more gain. If you have $10K of selling expenses, that means you have $10K less gain.

Also, if you have passive suspended losses for the property, these may be unlocked when you sell the property.