Discussion:Little foreclosure question
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| This was a recourse loan, and he is insolvent. Does my assessment of this seem correct?}} | This was a recourse loan, and he is insolvent. Does my assessment of this seem correct?}} | ||
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Revision as of 15:37, 16 March 2009
Discussion Forum Index --> Advanced Tax Questions --> Little foreclosure question
Discussion Forum Index --> Tax Questions --> Little foreclosure question
| 15 March 2009 | |
| I think I have this figured out, but I just need a knod from my TA experts.
Client has condo that was primary residence for five years. He rented home out for one year while he lived abroad. While he was abroad, his home went into foreclosure. He moved back, declared bankruptcy, and condo is foreclosed. So, we are claiming the rental income/exp on sch e with depreciation. Then reporting the sale due to foreclosure, however, he will qualify for 121, so no cap gain income there. The only taxable event is the recapture of depreciation (which is ridiculous, because this all happened last year!). This was a recourse loan, and he is insolvent. Does my assessment of this seem correct? | |
