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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.

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sjrcpa
Level 15

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


Ex-AllStar

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6 Comments 6
sjrcpa
Level 15

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


Ex-AllStar
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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
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sjrcpa
Level 15
Probably not.

Ex-AllStar
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KMB14
Level 3
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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

"*******Tax software is no substitute for a professional tax preparer*******
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IRonMaN
Level 15
Another proud member of the team I see. :wink::wink:

Slava Ukraini!
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