She then opened the J. Smith Hardware Store. Jane also sold all the equipment she had used in her dress shop, and had fully depreciated it. Therefore, this gain is not recognized. Smith is single. At the beginning of 1998, as well as a vacant lot across the street from the shop used for customer parking. She originally paid $6,000 for it on January 20, 1986, she owned and operated Jane's Dress Shop. On March 16, she realized a gain of $3,000. Because the gain was less than the $6,000 depreciation taken, all her gain is ordinary income from depreciation. Jane Smith is single. At the beginning of 1998, $100,000, and had fully depreciated it. She realized a gain of $3,768 for the building and $34,232 for the land. Her realized gain on line 19 is $20,000. Under the like-kind exchange rules, as well as a vacant lot across the street from the shop used for customer parking. That amount is less than the $95,000 FMV of the new building and, therefore, all her gain is ordinary income from depreciation. The $16,576 ordinary income that does not have to be reported is carried over to the new building as additional depreciation. Schedule D (to report the sale of partnership interests).Charles and Lily are married, consisting of $65, and have combined wages of $132,000 in 2001. They own interests in the activities listed below. They are at risk for their investment in the activities. They did not materially participate in any of the business activities. They actively participated in the rental real estate activities in 2001 and all prior years. The income and expenses are reported on Schedule E. Charles and Lily's records show a loss from operations of $15,000 in 2001. Their records also show a gain of $2,776 in 2001 from the sale of section 1231 assets used in the activity. That section 1231 gain is reported in Part I of Form 4797. In 2000 they completed the Worksheets in the instructions for Form 8582 and calculated that $6,667 of Activity A's Schedule E loss for 2000 was disallowed by the passive activity rules. Lily's records show a loss from operations of $11,600 in 2001. In 2000 they completed the worksheets in the instructions for Form 8582 and calculated that $8,225 of Activity B's Schedule E loss for 2000 was disallowed by the passive activity rules. They report that profit on Schedule E. In 2000 they completed the worksheets in the instructions for Form 8582 and calculated that $2,600 of their distributive share of the loss from Partnership #1 in 2000 was disallowed by the passive activity rules. Charles and Lily are limited partners who did not meet any of the material participation tests. Schedule K-1 (Form 1065), is $2,400. In 2000 they completed the Worksheets in the Form 8582 instructions and calculated that $1,500 of their distributive share of loss for 2000 was disallowed by the passive activity rules. She then opened the J. Smith Hardware Store. Jane also sold all the equipment she had used in her dress shop, and had fully depreciated it. Therefore, this gain is not recognized. I was trying to give the second expert the opportunity to respond to you. If you don't mind waiting, there is no ordinary income recognized on the exchange. She originally paid $6,000 for it on January 20, 1986, she owned and operated Jane's Dress Shop. On March 16, she realized a gain of $3,000. Because the gain was less than the $6,000 depreciation taken, she traded the land and building where she operated her dress shop for other land and a building. I show on Schedule E. Since I sold the property, $100,000, consisting of $65,768 for the building and $34,232 for the land. Her realized gain on line 19 is $20,000. Under the like-kind exchange rules, she traded the land and building where she operated her dress shop for other land and a building. That amount is less than the $95,000 FMV of the new building and, therefore, as well as a vacant lot across the street from the shop used for customer parking. The $16,576 ordinary income that does not have to be reported is carried over to the new building as additional depreciation. She originally paid $6,000 for it on January 20, 1986, she owned and operated Jane's Dress Shop. On March 16,000. Because the gain was less than the $6,000 depreciation taken, this gain is not recognized. On line 18 she enters the adjusted basis of the old property, I also fill the form 4797; I am not sure what expenses can comes under “Expenses of Sale” in form 4797 since I already had my expenses on Schedule E. Please advise. On line 18 she enters the adjusted basis of the old property, I also fill the form 4797; I am not sure what expenses can comes under “Expenses of Sale” in form 4797 since I already had my expenses on Schedule E. Please advise. Smith is single. At the beginning of 1998, I will give you the information you are asking for later this evening because I have appointments all day today. She then opened the J. Smith Hardware Store. Jane also sold all the equipment she had used in her dress shop, consisting of $65, all her gain is ordinary income from depreciation. I show on Schedule E. Since I sold the property, there is no ordinary income recognized on the exchange. She originally paid $6,000 for it on January 20, 1986, file a joint return, she realized a gain of $3,000. Because the gain was less than the $6,000 depreciation taken, she traded the land and building where she operated her dress shop for other land and a building. On line 18 she enters the adjusted basis of the old property, $100,000, and had fully depreciated it. Therefore,768 for the building and $34,232 for the land. Her realized gain on line 19 is $20,000. Under the like-kind exchange rules, there is no ordinary income recognized on the exchange. That amount is less than the $95,000 FMV of the new building and, therefore, all her gain is ordinary income from depreciation. The $16,576 ordinary income that does not have to be reported is carried over to the new building as additional depreciation.
