What form do you use for sale of investment property?
John Thompson
Published Mar 22, 2026
Form 4797
Report the gain or loss on the sale of rental property on Form 4797, Sales of Business Property or on Form 8949, Sales and Other Dispositions of Capital Assets depending on the purpose of the rental activity.
Form 1099-S Proceeds From Real Estate Transactions is used to report proceeds from real estate transactions. Where this information is reported depends on the use of the property – main home, timeshare/vacation home, investment property, business use, or rental use.
How to report sale of investment property on federal tax return?
Sale of an investment property (reportable on Schedule D) From within your TaxAct return (Online or Desktop), click on the Federal tab. On smaller devices, click in the upper left-hand corner, then choose Federal. Click Investment Income to expand the category, then click Gain or Loss on the Sale of Investments
Where do I record the sale of my investment property?
To enter this as a capital asset sale in TurboTax, log into your tax return (for TurboTax Online sign-in, click Here) and type “investment income (gains and losses)” in the search bar then select “jump to investment income (gains and losses)”. TurboTax will guide you in entering this information (see step 6 below)
What happens when you sell a real estate investment property?
Unfortunately when you sell an investment property, the IRS gets those savings back in the form of depreciation recapture. If you make a profit on the property in an amount more than the depreciated value (regardless of whether you claimed it), you must pay depreciation recapture tax at a rate of 25% on that overage amount.
How to calculate loss on sale of investment property?
The first screen will ask if you sold any investments during the current tax year (This includes any asset held as an investment property so answer “yes” to this question) Enter the your cost basis- cost plus capital improvements less any depreciation deducted or allowable as a deduction less any casualty losses take on the property.
