Lucho Posted March 1, 2015 Report Share Posted March 1, 2015 My client invested some cash in year 1999 and was collecting a profit from the investment (no return of capital) every year until 2008. The investment company which hold my client money declared bankruptcy. During the course of business, the investment company invested funds in real estate; after the bankruptcy, the trustee sold the properties and my client received a 1099-S that shows the gross proceeds (my client's share of the proceeds) in box 2 and the description of the property in box 3 and escrow number . Am I right if I use Form 4797 and use the original cash investment from year 1999 as the basis to figure out the loss of my client investment (proceeds is almost half of investment? and keep the 1099-S as a reference of support for the IRS. I have not being able to find another way around, so, I am begging for help. Thank you in advance. Lucho Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 1, 2015 Report Share Posted March 1, 2015 First, what kind of investment was it and what was the investment vehicle, REIT, LLP etc. Second was he receiving K - 1 s or ? Third, what kind of income was he receiving , Interest, or ? Really need more detailed info Quote Link to comment Share on other sites More sharing options...
Lucho Posted March 1, 2015 Author Report Share Posted March 1, 2015 First, what kind of investment was it and what was the investment vehicle, REIT, LLP etc. Second was he receiving K - 1 s or ? Third, what kind of income was he receiving , Interest, or ? Really need more detailed info 1- Investment vehicle, REIT 2- No K-1 3- He was receiving interest only Thank you Lucho Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 1, 2015 Report Share Posted March 1, 2015 These facts make no sense. A REIT has to be a corporation but the 1099S would only be issued if it was a partnership or the real estate was ditributed to the shareholders before it was sold. If he was receiving interest, his investment was a loan. If it was a partnership, he should have been getting a K1. If it was a loan to a partnership that somehow got converted to equity then the facts make sense. 1 Quote Link to comment Share on other sites More sharing options...
Lucho Posted March 1, 2015 Author Report Share Posted March 1, 2015 These facts make no sense. A REIT has to be a corporation but the 1099S would only be issued if it was a partnership or the real estate was ditributed to the shareholders before it was sold. If he was receiving interest, his investment was a loan. If it was a partnership, he should have been getting a K1. If it was a loan to a partnership that somehow got converted to equity then the facts make sense Thank you for your post, it is very helpful. Lucho Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 1, 2015 Report Share Posted March 1, 2015 De nada. 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.