IllinoisTaxMan

Are you talking about reporting it on Sch E page 1 or Sch E page 2?

Thank you for your advice. However, how do I report it on Sch E since the taxpayer can't receive K-1 any more from his dissolved company?

The client couldn't retrieve them. The buyer dissolved the business too. One of the buyers passed away. The other is broke after dissolved.

The client dissolved S-corp in 2008 after selling the business assets by installment method. The client didn't receive any payments from the buyer in both 2008 and 2009. The note issued by the buyer became worthless in 2009. I am concerned where the client can claim the business bad debt on his tax return (1040). Any experienced advice would greatly appreciated.

Do you know any code secton on this? I couldn't find it out.

The Client, 100% shareholder of S Corp is considering the sale of business which includes equipments, furniture and inventory by installment sales and then dissolves itself. I wonder if it is possible to do it that way. I heard the S-corp can't sell its business by installment. Any input is appreciated.

This is what I wonder about. In case of residence, due to Section 1082, the discharged debt is not income to the taxpayer. Does this real property apply to Section 108? The taxpayer has 1031 deferred gain. So, if the rule applies, it will save her lot of taxes.

I am asking the taxpayer to request P/L from the receiver. I have one more question. How do I calculate the capital gain on this foreclosed property?

Ok, But, the problem is that the taxpayer didn't receive any information from the lender such as the date of the foreclosure, debt cancellation, the mortgage interest payment which occurred in 2007. I wonder how I can prepare 2007 return on these matters.

The lender sued the taxpayer for not payments of mortgages. The court ordered the receivership. The receiver just received the management fee approved by the court. The rents collected by the receiver was applied to interest, principles, property taxes and other operating expenses. The client couldn't even touch any money since the court didn't allow her to do it.

Does anybody know when the stock of MCI became valueless? The taxpayer wants to report it now.

It was not a part of bankruptcy. It was foreclosed but the lender didn't issue 1099-A or 1099C. The taxpayer could receive the Settlement Statement. It showed that the property was sold on October 2007 and the seller was the lender. Would you comment on my question again?

The client's rental property fell into the court ordered receivership in September 2006. I would like to know who is responsible for 2006 tax return, the taxpayer or the receiver. I reported the rental activity under the taxpayer return for a whole year after I colleced tax data from the receiver under my assumption that all the funds (trust) were treated as owned by the taxpayer. Now, the taxpayer wants me to amend it since she had no right to use the money/lease/rent collected by the receiver. I wonder if I have to amend it or not. Any experienced advice is welcome.

Thank you for your response. It gives me some info.

My question is if the taxpayer gives up the use of loss carryover this year, he loses the right to use it in the future years. Does anybody have this experience? Any comment is appreciated.