1065-US: Troubleshooting amounts in Form 1065, Page 1, line 6 and Form 4797, Part II, line 17 (FAQ)

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Question

Why does Form 1065, Page 1, line 6 not match the Form 4797, Part II, line 17 amount?

Answer

When rental or farm rental activities dispose of assets, the gain or loss is reported on Schedule K, line 2 or 3. Therefore, any gain or (loss) related to a disposition in Screen Rent or Screen 4835 is subtracted from Form 1065, line 6. The gain or loss from the disposition on a rental activity is reported on the Rental and Royalty Schedule, which transfers to Form 8825 and Schedule K, line 2 for rental real estate activities or Schedule K, line 3 for other rentals. The gain or loss from the disposition of a farm rental activity is reported on the Farm Rental Income and Expenses Worksheet, which transfers to Form 8825 and Schedule K, line 2.

Related topic: Forms 4684, 4797, 6252, and 8824 and Schedule D FAQs (1065)

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