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Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

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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