Tax Prep by Deb Posted April 11, 2013 Report Posted April 11, 2013 Okay, I've been tossing this one around for a while now and the more I read the more confused I get. I have a client who had a rental property that was fore-closed upon. The only document he has received is a 1099-A. It shows fmv of $314,000 and balance of principal outstanding loand $44,180 (This is the second on the house, no paperwork so far from the 1st). Do I need to report anything this year like the sell of the rental or do I wait for more documentation? Any help would be greatly appreciated! Deb! Quote
Lion EA Posted April 12, 2013 Report Posted April 12, 2013 1099-A triggers the report of a sale. Quote
Pacun Posted April 12, 2013 Report Posted April 12, 2013 I would use the amount of the loans as the cost price and the FMV as the selling price. You have to dispossed of an asset on sch E which will be transferred to Sch D and other forms. Quote
Lion EA Posted April 12, 2013 Report Posted April 12, 2013 You compute your cost basis in the usual way. I think FMV is the sales price. Have a foreclosure myself to get done over the weekend. On the job training! Quote
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