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

[dreyer1]

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

[sjrcpa · Accepted solution]

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

[dreyer1]

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

[sjrcpa]

Probably not.

[KMB14]

You might find these articles helpful in that situation: https://accountants-community.intuit.com/articles/1606969-reporting-a-form-1099-a-for-an-individual-... / https://accountants-community.intuit.com/articles/1606989-individual-1099-a-1099-c-foreclosure-repos...

[abctax55]

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

[IRonMaN]

Another proud member of the team I see. :wink: