Did you like how we did? Rate your experience!

Rated 4.5 out of 5 stars by our customers 561

Award-winning PDF software

review-platform review-platform review-platform review-platform review-platform

Video instructions and help with filling out and completing Can Form 4797 Basics

Instructions and Help about Can Form 4797 Basics

Welcome to Simple Tax. One, Two, Three! Sales of rental property form 4797. Unruh captured a $1250 gain. And Schedule D tax worksheet create a basic tax return for a married couple filing jointly. For sales of rental property, you need Schedule D and form 4797. Next, click the import button to enter W2 income. For example, enter $50,000 W2 income. Click the Edit button to enter sales proceeds data. Enter the property description, sales proceeds, the cost (including the original purchase price, any improvements, and all expenses during the sales transactions), and any depreciations deducted in the past. Enter the sales date and purchase date. Rental property capital gain is $12,500. It will require using form 4797 and Schedule D for the capital gain. It also needs to use the Unruh captured gain worksheet for the depreciations. Enter $1250 for the property type. Click Save when done. Now, click View button to see the results. The form 4797 is generated. Since it is a capital gain, enter details in part 3. The rental property is considered a $12,500 gain. The cost basis is adjusted by depreciation, and the total capital gain is $70,000. This amount is then entered into Schedule D as long-term capital gain. Because of depreciation, line 19 of Schedule D must include the Unruh captured section 1252. The depreciation from form 4797 is included in the worksheet, and the total amount for line 19 is $20,000. Now, let's look at form 1040. Simple income is $99,400. The regular tax would be $16,437. But capital gain can use Schedule D tax worksheet. So, look at the worksheet for taxable income of $99,400. The worksheet allows $25,500 zero tax, $24,500 at a tax rate of fifteen percent, and $49,400 at the regular tax rate. So, the total calculated...