JACKSORH Posted April 8, 2009 Report Share Posted April 8, 2009 The owner abandoned his property and received a 1099A which shows in box 1, the date of lender's acquisition, box 2 shows bal. of principal remaining(66,600); box 4 shows fair mkt value of property(54,452) and box 5 shows that he is not personally liable for repayment of debt. How would this scenario be dealt with. Would I only be preparing form 4797 because it is rental property and not sch. d? Would the sales price be the 66,600 since he is not personally liable for the debt and nothing is done with box 4. How is his loss or gain determined. What am I missing? Thanks for your help. Quote Link to comment Share on other sites More sharing options...
David1980 Posted April 8, 2009 Report Share Posted April 8, 2009 You've got it. As far as gain/loss, you have the sales price and date sold from the 1099A. Purchase price and date purchased is the same as any other sale of property. Be sure to recapture depreciation allowed or allowable. Quote Link to comment Share on other sites More sharing options...
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