Sales, Trades, Exchanges
Question: What forms do we file to report a loss on the sale of a rental property?
Rental property is income-producing property and as such, considered business property. Report the loss on the sale of rental property on Form 4797 (.pdf), Sales of Business Property. Normally, you transfer the loss as ordinary loss to line 14 of Form 1040 (.pdf), U.S. Individual Income Tax Return.
- Instructions for Form 4797 (.pdf), Sales of Business Property
- Publication 544, Sales and Other Dispositions of Assets
Category: Sale or Trade of Business, Depreciation, Rentals
Subcategory: Sales, Trades, Exchanges