An individual taxpayer sells a business building placed in service five years ago and recognizes a gain.This is the taxpayer's first and only sale of Sec.1231 property.Since the gain will be treated as LTCG,the details of the sale should be reported on Schedule D of Form 1040.

Question

Quizplus · Accepted Answer

The gain from the sale of Sec. 1231 property is reported on Form 4797, not Schedule D. If it qualifies as a long-term capital gain after netting, it is then transferred to Schedule D.

An Individual Taxpayer Sells a Business Building Placed in Service