When To File Forms

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When to File Form 4797

Form 4797 is the form you file to 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.

This is the form (rather than Schedule D) that you would file to report any gain arising on Line 21 and/or Line 22 of Form 8824.

In our own Buy-Down example, you had a taxable gain of $8,000 that would be reported on Form 4797, page 1, on lines 16, 18, and 18b(2).

Download: Form 4797 here

The IRS Instructions for Form 4797 are available here


When To File Schedule E

Schedule E (to Form 1040) is the form that individuals use to report rental income and expenses. This form is the one 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, such as a partnership, corporation, limited liability company (LLC), etc., you would file Form 8825 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 the form that entities such as partnerships, corporations, limited liability companies (LLCs) etc. use to report rental income and expenses. You should use this form if you are an entity other than an individual that files Form 1040. This form is the one 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 an individual, you should use Schedule E.

Form 8825 is available here: Form 8825

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