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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 all right 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 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 2023 - 14 all right 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...