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Updated over 5 years ago,

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Eli Comay
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Is IRS Form 4797 Necessary On Sale of An Investor's Only Rental?

Eli Comay
Posted

I am an investor in a single rental property which I just sold.  I'll file IRS Form 8949 and Schedule D (with unrecaptured depreciation on line 19).  Is Form 4797 also required even though real estate is not my trade or business?

Publ. 544 includes: “Generally, gain from the sale or exchange of depreciable property not used in a trade or business but held for investment or for use in a not-for-profit activity is capital gain.  Generally, the gain is reported on Form 8949 and Schedule D.”

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