Fill Form 4797 Info 2022-2023

Music, good morning everyone, and welcome to today's class called "Sale of Home." We're going to be taking a close look at the important rules that we should be aware of when we're dealing with the sale of a personal residence. We're just going to quickly flash past the course objectives and the table of contents onto page three of the manual, where we're going to be looking at the introduction. To start our introduction, your home is considered to be a personal use capital asset, and the following tax rules normally apply to the sale of personal use capital assets. Firstly, if you have a loss on the sale of a personal use capital asset, that loss is not normally reportable, and any loss that you might have is not deductible. Conversely, if you sell a personal use asset for a profit, that gain on the sale of that personal use asset is taxable. So the IRS doesn't give, but it sure wants to take in that scenario. Now, when it comes to the sale of your main home, though, special rules may allow you to exclude a portion or all of your gain from the sale, making the sale of the home a tax-free event. Today's class is going to describe the rules surrounding the sale of a home and how to determine what portion of the gain you have from the sale can be received tax-free. Just briefly, we're going to look at some rules that were in place prior to May 7, 1997. That was a rather important day in the history of the sale of a home because on that day, new rules took place. Prior to that day, there was no such thing as an exclusion on the sale of your home. The rules back then were...