How do you report a short sale of rental property in lacerte

Forum|Forum|6 years ago
December 7, 2019
2 replies
17 views

I thought the difference between FMV and amount owed on mort. was added to rents, but that does not explain depreciation recapture.

Lacerte Tax

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Best answer by sjrcpa

It gets reported as a sale. Can be done from the depreciation Screen or the Dispositions Screen.,

sjrcpaAnswer

Level 15

It gets reported as a sale. Can be done from the depreciation Screen or the Dispositions Screen.,

The more I know the more I don’t know.

D

dreyer1Author

Level 2

Thanx, and I imagine if a 1099-A or C gets issued it would be reported as rental income if debt is forgiven

abctax55

Level 15

1099-A & 1099-C are different issues/occurrences. The tax implications of each are complex, but I've never heard of either showing up as rental income.

I suggest you google Dave Fogel, CPA and go to his website; he's a "guru" when it comes to how/when COD is reported (and possibly exempted from taxation) and has many articles there for your reading pleasure.

edit....here ya' go:

https://fogelcpa.com/tax-articles

HumanKind... Be Both

IRonMaN

Level 15

Another proud member of the team I see.

Slava Ukraini!

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