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Tax Law (Questions About Taxes)/Which Form 4797, 8949 and Schedule D and 982?


QUESTION: Thank you very much for this service.

Do I use,  please, Form 4797, 8949, Schedule "D" and/or 982 for the following:

A short sale in 2013 of qualified residential rental property by married couple filing jointly; 1099C's are accurate.

IRS says  "use 8949" to report any short sale
"Use 4797 to report sale of business property"

If Form 8949 is to be used, do we also submit Schedule "D"?

If we use 982 do we complete Part III  "corporation" consent?

Thank you again


Thanks for your question.

Start by completing the appropriate portions of Form 4797 since a rental is considered business property.  Remember that the basis of the property is reduced by depreciation allowed or allowable.  

The completed amount will transfer to Form 8949 where you will enter the required information there, then transfer that amount to Schedule D.

Use 982 only if you are claiming an exception to having to pay tax on the cancelled debt.  But you do not use Part II at all since this is for an individual, not a corporation.

Hope this helps.

John Stancil, CPA

---------- FOLLOW-UP ----------

QUESTION: Then is the loss of 95,186 allowed to carry from Schedule D to the 1040 to offset the 98,664 debt forgiveness without the 3,000 limitation shown on Schedule D...without filing Form 982?

Thank you again...donation coming.

I apologize.  I misstated earlier. Since it is considered business property, you complete Part II of the 4797 and do not use 8949 or Schedule D.  I don't know where my mind was.  I think it because I need to eat lunch.  

You can take the entire loss as indicated on the 4797.  

John Stancil, CPA

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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