For a 2023 update:    • IRS Form 4797: Rental Real Estate Sal...  

For some other videos on these topics, see below:
Am I a Real Estate Professional:    • SAVE TAXES with Real Estate!!!  Quali...  
Form 4797 with Section 1231 Gains on Sale of Rental:    • How to File IRS Form 4797  Nonrecapt...  
Form 4797 with Section 1250 Depreciation Recapture:    • Real Estate Depreciation Recapture  ...  
Form 4797 with Section 1250 Ordinary Income Treatment:    • How to File IRS Form 4797  Section 1...  
Section 1250 & 1231 Gains and Losses:    • Understanding Section 1250 Gains and ...  
Sale of Business Vehicles:    • How to File IRS Form 4797 Sale of Bus...  
Section 475 MTM Election & Form 4797:    • How to Complete IRS Form 4797 for Sec...  

If you are engaged in the rental real estate business, you might one day decide to sell that rental property. The sale of rental real estate carries special rules and provisions that often differ from the sale of other property.

The sale of real estate (Section 1250 property) that is used in a trade or business and held for more than one year can qualify for certain preferential tax treatment under Section 1231. Gains are treated as longterm capital gains, while losses are treated as ordinary losses. Although the Section 1231 gains are characterized as longterm capital gains, consideration must also be given to unrecaptured Section 1250 depreciation.

In this video, I cover three examples of how to report the sale of residential real estate on IRS Form 4797.

1. The sale of property held longterm for a gain
2. The sale of property held longterm for a loss
3. The sale of property held shortterm for a gain

For a larger database of tutorials, please visit our website and search for your question:
https://knottlearning.com/

DISCLAIMER: The information provided in this video may contain information about tax, financial, and legal topics. Such materials are for informational purposes only and may not reflect the most current developments. These informational materials are not intended and should not be taken as tax, financial, or legal advice. You should contact an advisor to discuss your specific facts and circumstances. Selfhelp services may not be permitted in all states or jurisdictions. The use of these materials does not create an attorneyclient or confidential relationship. This video does not include information about every topic or issue related to these informational materials.

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