Sales, Trades, Exchanges

Question: What forms do we file to report a loss on the sale of a rental property?

Answer:

Rental property is income producing property, and as such, considered business property. The loss on the sale of rental property is reported on Form 4797 (PDF), Sales of Business Property. The ordinary loss is then normally transferred to line 14 of Form 1040 (PDF).

Additional Information:

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

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The OMB number for this study is 1545-1432.
If you have any comments regarding this study, please write to:

IRS, Tax Products Coordinating Committee

SE:W:CAR:MP:T:T:SP

1111 Constitution Avenue NW

Washington, DC 20224

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