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

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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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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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Level 15

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


ex-AllStar

View solution in original post

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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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Level 15
Probably not.

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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

Former Chump... umm.... AllStar.
If a post answers your question, click on *Accept as solution* for future searches
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Level 15
Another proud member of the team I see. :wink::wink:
ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.
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