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How do I go about reducing the basis of a rental property and corresponding assets in the tax software, due to a loan modification. They are all reduced to $0.

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Level 1

Changing the basis to $0 on the assets is creating errors. I would assume the depreciation taken up to the date of loan modification, would remain, as it would need to be recaptured and considered in the calculation when sold.

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Reduce NBV to zero. 

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4 Replies 4
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Reduce NBV to zero. 

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Level 1
Where is this at in ProSeries Professional? I assume on the asset entry page itself, but creates an error when trying to alter the original cost. Also,is NBV, the net basis value?
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Level 12
These are a couple of options:
1) Delete the Asset Entry Worksheet.  You are not depreciating anything, so there is no need for it.  Just make a note of the information for whenever it is sold.
2) Change the "prior depreciation" to the amount of the Basis, thereby changing the Net Basis Value to $0 and giving $0 depreciation.  Again, make note of the ACTUAL prior depreciation for whenever the property is sold.
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Level 1
Very helpful! Thank you!
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