All Forum Posts by: Eli Comay

Thank you for your comments.  I apologize to you and any other readers of the above incomplete post that was transmitted before I was ready.

I do have a small amount of positive net taxable income from the rental but depend on my non-real-estate job for 99% of my income.  I am not eligible for the QBI deduction and think my rental does not rise to the level of a trade or business since I have only the 1 rental property which is residential and not commercial, have no day-to-day involvement, spend less than 25 let alone 250 hours a year dealing with the property, and the lease is traditional and for a year at a time.

I look forward to any additional comments you or others may make, including re whether Form 4797 is required in addition to Form 8949 and Schedule D.

• Since The type of property rented (commercial versus residential);
• The number of properties rented;
• The owner's (or the owner's agents') day-to-day involvement;
• The types and significance of any ancillary services provided under the lease; and
• The terms of the lease (e.g., a net versus a traditional lease and a short-term versus a long-term lease).

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.”