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 Form 4797 Deferred

Instructions and Help about Form 4797 Deferred

The most common ones you might think about, okay well I'm living in one unit and I am renting out the other unit. Alright, so if you're doing a sale for somebody selling a duplex and they're living in one of the units, they can use code 121 for their portion and code 1031 for the difference. Now what's really interesting is, and I'm going to get to this in a second, which really, it's been really interesting and do this without anything falling or high success, okay, is that see that revenue procedure 2005-14, alright, and that revenue procedure, what happened was that the IRS said if a taxpayer has a property that used to be the principal residence and they were out of the property no more than three years, they could qualify for 121 and 1031 treatment. I had a transaction, okay? They were selling for a million five up in Palos Verdes, okay? I'm going to say there's a zero basis of the property. This property was a rental for two and a half years, so they were running out of time for that three year out of the property. The owners of this property said, "I don't want to, I'm not sure if I really want to sell this property because I only get how much, five hundred thousand, right?" So that means, and let's just pretend that their basis is zero, so they'll say they're going to pay tax on a million dollars there. "I'm not sure if I want to do that." I said, "Well, you know you can do both. This is what do you mean?" I says, "Well, you can take five hundred thousand dollars under code 121 tax-free and then you take the million and you 1031 that into another...