When To File Forms

When to File Form 4797

Form 4797 is where you report the sale of property used in a trade or business. If you don't have a taxable gain, you do not have to file this form.

Use this form (rather than Schedule D) to report any gain arising on Line 21 and/or Line 22 of Form 8824.

In our own Buy-Down example, Fred and Sue had a taxable gain of $8,000 that would be reported on Form 4797, page 1, on lines 16, 17, and 18b.

Download Form 4797 here
The IRS Instructions for Form 4797 are available here


When To File Schedule E

Schedule E  (to Form 1040) is where individuals report rental income and expenses. This is the form you would use even if you had rental income but no expenses, or if you had rental expenses but no rental income. If you are filing a return for an entity, like a partnership, corporation, limited liability company (LLC), etc., you would file Form 8825 below instead.

Form 1040 (Schedule E)
Further instructions from the IRS are available here: Instructions for Schedule E, Supplemental Income and Loss


When To File Form 8825

Form 8825 is where entities such such as partnerships, corporations, limited liability companies (LLCs) etc. report rental income and expenses. You should use this form if you are an entity other than an individual that files Form 1040, above. You would use this form even if you had rental income but no expenses, or if you had rental expenses but no rental income. If you are an individual, you should use Schedule E, above.

Click here if you need Form 8825.
From the IRS: About Form 8825, Rental Real Estate Income and Expenses of a Partnership or an S Corporation.

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