trailblazers
Level 3
02-22-2020
02:29 PM
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On schedule what would be the best way to report loss of rental property outside of the client's resident state due to a lien by HOA?
PhilG_CPA
Level 3
02-25-2020
12:24 AM
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Generally, a lien doesn't constitute a loss of the underlying property. The taxpayer still owns it, they just have to clear the lien before they can sell it.
I drive a minivan.
trailblazers
Level 3
02-25-2020
02:02 PM
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Yes. However, the client loses the property because he wasn't aware of the lien and hence, the court made HOA the winner and that's how he lost the property.
Level 15
03-04-2020
10:17 AM
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You treat it as a sale, and fill out the asset worksheet. See this link for more info.