Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

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

dreyer1
Level 1

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

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Best Answer

Accepted Solutions
sjrcpa
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.

View solution in original post

6 Comments 6
sjrcpa
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.
dreyer1
Level 1
Thanx, and I imagine if a 1099-A or C gets issued it would be reported as rental income if debt is forgiven
sjrcpa
Level 15
Probably not.
The more I know, the more I don't know.
KMB14
Level 3
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. :wink::wink:

Slava Ukraini!