My client abandoned his rental property in August of 2007. We are now just filing the return. I wanted to get concurrence that the abandonment is treated as a sale. His Balance as reported on the 1099A is $46,800. Fair Market value reported is $158,375. His original cost is $95,000 with accumulated depreciation of $23,000. I guess what I'm saying is I need some help on this one.
He also had a cancellation of debt on his principal residence is the amount of $92,846 but the 1099-C has a market value of zero. Is that the norm? Since it is a foreclosure on his primary residence, can he exclude the entire amount from his taxes for 2007 (form 982).
Thanks for any help you might provide. This is the first time dealing with these two issues.
He also had a cancellation of debt on his principal residence is the amount of $92,846 but the 1099-C has a market value of zero. Is that the norm? Since it is a foreclosure on his primary residence, can he exclude the entire amount from his taxes for 2007 (form 982).
Thanks for any help you might provide. This is the first time dealing with these two issues.
Ronald S. Steenburg
United Tax Service
1617 Swamp Pike
Gilbertsville, PA 19525
Office: 610-369-5923
Fax: 610-473-0431
www.unitedtaxonline.com
Unless expressly stated otherwise in this communication, this advice is not
intended to be used, and cannot be used, for the purpose of avoiding federal tax penalties.
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United Tax Service
1617 Swamp Pike
Gilbertsville, PA 19525
Office: 610-369-5923
Fax: 610-473-0431
www.unitedtaxonline
Unless expressly stated otherwise in this communication, this advice is not
intended to be used, and cannot be used, for the purpose of avoiding federal tax penalties.
This electronic communication (including any attachments) may contain proprietary, confidential or privileged information. This communication is intended only for the use of indicated e-mail addresses. If you are not an intended recipient of this communication, please be advised that any disclosure, dissemination, distribution, copying, or other use of this communication or any attached document is strictly prohibited. If you have received this communication in error, please notify the sender immediately by reply e-mail and promptly destroy all electronic and printed copies of this communication and any attached documents
IRS Circular 230 Disclosure: Unless expressly stated otherwise in this transmission, any tax advice contained herein, forwarded with or attached to this message was not and is not intended to be used, nor may it be relied upon or used, by any taxpayer for the purpose of (1) the avoidance of any tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions, or (2) promoting, marketing or recommending to another party any tax transaction or tax-related matters that may be addressed herein.
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