jasdlm Posted March 5, 2017 Report Share Posted March 5, 2017 Taxpayer is an LLC (2 partners - not spouses). House sold on installment was repossessed and 4 days later sold at a loss. I have calculated the basis following the repossession and then show the sale on 4797. House had been a rental prior the the installment sale 5 years ago. Seems to me that there is a short-term, ordinary income loss based on the sale of the repossessed property. Am I thinking about this correctly? Thanks much. I've tried google, also, but I must not be putting the question in correctly. I have carefully reviewed the IRS Publication about recalculating the basis on the repossession, and I feel okay about that. It is the short-term ordinary income loss that I am worrying about. Quote Link to comment Share on other sites More sharing options...
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