Gizzmo

He lived in Michigan and bought the Flip house in Florida. He showed me cost of $141,000 that he put into the house to fix it up to sell. I really don't know what he told the mortgage company. He bought the house just before the housing crashed. So understand what your saying just use Schedule D and not 4797 which I understand. Would you agree that the 1099C goes on Line 21 (other Income). I know he never lived in the house. All his w2 income is from Michigan. Thanks for all your help.

I have been researching this question for 2 weeks and I would just like some other thoughts on this topic. My client bought a house to flip in Florida for $385,000 and sold it for $355,00 and did a short sale. The mortgage company gave him a 1099C Box 2 (70,980) and Box 7 FMV (380,000). His expense to fix it up were $141,310. He does not have a business, he bought the house for investment. So I did a 4797 to show the sale. I put the 1099C Cancellation of Debt on 1040 line 21($70.980, other Income). On the 1040 Line 14 I show a large loss. I first want to make sure I did the return correctly and can I carry forward the loss to next year and if so, how do I do that ? I want to elect not to carry the loss back, just forward. I am thank you for any help or advice you can give me. Thanks Gizzmo

I have 2 new clients that haven't filed in 10 years. I was just making sure which years are still open to file to get their refunds. I remember 3 years from the due date of the return. So I would say that 2005, 2006 and 2007 are still open to get refunds. Is that correct ? Since they haven't filed in 10 years how far back would you really file ? I know the one would of received refunds all those years and the other owes for the past 10 years. Any thought on how you would handle this. Thanks for any input.