Ranger Posted February 1, 2011 Report Posted February 1, 2011 Client invested in Las Vega condo rentals in 2008 on advice of son. Client quit making payments after management company fell apart and rent dried up. Cost 280,000, put down 90,000 and borrowed 190,000. Basis is about 270,000 after depreciation. Per 1099-A: amount owed = 187,000, fmv =137,00 and box 5 is checked yes. Am I correct that client has ordinary gain of $50,000 (unless insolvency can be proved) and no loss is allowed? Quote
Pacun Posted February 2, 2011 Report Posted February 2, 2011 Any thoughts? Yes, he can use the loss at 3K yearly. Quote
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.