Tax Prep by Deb Posted April 11, 2013 Report Share 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 Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted April 12, 2013 Author Report Share Posted April 12, 2013 Anyone? Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 12, 2013 Report Share Posted April 12, 2013 1099-A triggers the report of a sale. Quote Link to comment Share on other sites More sharing options...
Pacun Posted April 12, 2013 Report Share 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 Link to comment Share on other sites More sharing options...
Lion EA Posted April 12, 2013 Report Share 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 Link to comment Share on other sites More sharing options...
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