Comments on: How do you report a foreclosed rental property to the IRS?

By: v b

v b — Wed, 03 Feb 2010 22:35:25 +0000

Let’s place it this way. If you DON’T report the “sale” of the property, the IRS will figure your cost basis was zero and tax you on the full amount.

By: Doctor Deth

Doctor Deth — Wed, 03 Feb 2010 21:48:09 +0000

no “closure” is needed – you just don’t report it for 2008 – there is no need to report anything that is zero income – business, rentals, etc.

By: LuViN_mOmMyHoOd

LuViN_mOmMyHoOd — Wed, 03 Feb 2010 21:00:36 +0000

Did you do your taxes? You should have reported it on your taxes, and that way it gets reported to the IRS. It should be reported on a schedule E (rent and royalty income) You would place all the information in on the home, but you would check the box that says “property was 100% disposed of in 2008″).

By: bostonianinmo

bostonianinmo — Wed, 03 Feb 2010 20:41:00 +0000

A foreclosure is nothing more than a forced sale. The sales price is generally the amount of the outstanding mortgage on it. You report the disposal of a business asset on Form 4797. Don’t forget to subtract the depreciation allowed or allowable even as it was held as a leasing from your basis. This is right whether you took the depreciation or not when you were renting it out. The gain or loss is reported on Schedule D.

By: dokomo

dokomo — Wed, 03 Feb 2010 20:23:18 +0000

You can enter to them preside over in DC.