charlie11

Any interest in discussing sale of tax practice on s/w side of Chicago? 650 clients mostly 1040's with sprinkling of partnerships. Send email to [email protected]

Sorry post was bad clients basis is approx 150,000. Yes he has a profit because he has lived in this house for about 20 years. Under this home equity program you can have your house appraised at any time (by the program) and as many times as you want. This appraisal then is your "guaranteed value" using this term lightly but hopefully you get idea. So when he did not get his previous approved apprasial price (market conditions, etc) on the sale he was given an additional $51,000 from the program. Yes he has a profit but what I am hoping I can do is report sales and then take 121 for married couple. Obviously I want to move slow as to not put client in harms way. I have dealt with one of these several years ago and the client back then did not receive a 1099 for shortfall between sale an appraisal. Thought, ideas greatly appreciated. thanks mec

Taxayer sells personal residentce for 165000, cos 100000. Taxpayer was a member of a state/local home equity assurance program (Chicgo area) which guaranteed to pay if appraised home later sold at a loss. Taxpayer filed claim and was awarded 53100 from the home equity program for loss of value. This dollar amount showed up on 1099 Misc. Inc. Box3. This program took a small amount from everyones tax bill, regardless if you joined or not if you were in designated area. To join the individual would only pay for appraisal. Not sure how to handle 1099 income. Any advise or help would be appreciated. thanks mec