Can Form 4797 Investors 2022-2023

Instructions and Help about Can Form 4797 Investors

Hey everyone its NIC Jerusalem here at the Joyce those happy home team wrapping up our quick little video series about tax consequences when selling a home our previous two videos we had chatted about what happens if you're selling your primary residence both you know right away within a two year or less period or maybe you own the home for a long period of time so the last part is what happens if you're selling a property that isn't your primary residence it's an investment it's a rental property what are the tax implications of like in those circumstances well there's two things to think about here Nick one is let's say it was always a rental property you never lived in it okay and then the second one we'll talk about is you once lived in it okay okay so always around the property you never lived in it it's an investment property okay if you owned it for over twelve months its capital gains when you sell it if you've been using it as a rental you are required to take to take depreciation recapture now what's important about that is even if you actually didn't appreciate it if you were doing your own taxes you didn't understand what depreciation meant and you never depreciated it the rules say that you still have to recapture what you should have done okay so it's one of those situations where if you do have rental property and you're doing your own tax return be sure you're doing it correctly okay okay so again when you sell that rental property we look towards basis okay basis is what you purchased the property for plus any improvements you made on the property okay okay then after that we take depreciation...