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Posted

The only income received in the final year of the estate, was interest income of $121, and the sale of farm land that resulted in a $158,000 loss.  Does the Farmland sale transaction go on the Form 4797, and should the loss be flowing through to the k-1s?

 

Posted

Yes, if it was business property it would flow through as an ordinary loss. If investment property then capital loss.

 

That sounds like quite a  loss for inherited farm property, is this in a drought area?

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