Pacun Posted February 11, 2008 Report Share Posted February 11, 2008 Client lost 2 homes last year. One was rental and the other was primary residency. Bank sent him documents showing FMV of the rental property of $340K and Debt $350K. Residency had a FMV of $470K and debt of $495K. President signed a law that my clients will not pay taxes on the debt forgiveness on the primary home but I am not sure if the rental property qualifies. Also, how do you dispose of the asset on ATX program? Quote Link to comment Share on other sites More sharing options...
ann newman Posted February 11, 2008 Report Share Posted February 11, 2008 Was the debt on the residence ALL acquisition deb? The "Tax Free" portion only applies to debt forgiveness on ACQUISTION debt on the primary residence. So it will not apply to the rental at all. I'm sorry I'll have to let some one else answer the rental dispostion because I have to get my kids ready for school but it might be like a sale but don't quote me and I can't look it up right now... sorry. Ann Quote Link to comment Share on other sites More sharing options...
Pacun Posted February 12, 2008 Author Report Share Posted February 12, 2008 Thank you for your reply. Debt forgiveness is line 21 (other income) correct? Quote Link to comment Share on other sites More sharing options...
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.