Discussion:Little foreclosure question
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| Revision as of 15:49, 16 March 2009 IDrinkYour Milkshake (Talk | contribs) (Roy is referring) ← Previous diff |
Revision as of 16:02, 16 March 2009 Woodstock (Talk | contribs) (Thanks for your) Next diff → |
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| {{ForumReplyPost|UserID=IDrinkYour Milkshake|Date=16 March 2009|Text=Roy is referring to the need to file Form 982.}} | {{ForumReplyPost|UserID=IDrinkYour Milkshake|Date=16 March 2009|Text=Roy is referring to the need to file Form 982.}} | ||
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| + | {{ForumReplyPost|UserID=Woodstock|Date=16 March 2009|Text=Thanks for your input - I will look at Sec. 108 - and IDYM - I am having trouble getting information from this client - no 1099-C, no cooperation whatsoever. I am trying to pick apart the situation - as a matter of fact, he just gave us the income/expense for the condo and there was no income for 2008 - it wasn't rented. And with preparer penalties on the rise, I am just attempting to cover all bases!}} | ||
Revision as of 16:02, 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? | |
RoyDaleOne (talk|edits) said: | 16 March 2009 |
| No, was the condo transferred to the bankrupt estate, see Section 108 for income exclusion for persons in bankruptcy or are insolvent. | |
IDrinkYour Milkshake (talk|edits) said: | 16 March 2009 |
| If he declared BK, of course he was insolvent!
As long as his 121 exclusion covers his gain, you should be right. Why is depreciation recapture ridiculous? You're getting an ordinary deduction for the same amount! | |
IDrinkYour Milkshake (talk|edits) said: | 16 March 2009 |
| Roy is referring to the need to file Form 982. | |
| 16 March 2009 | |
| Thanks for your input - I will look at Sec. 108 - and IDYM - I am having trouble getting information from this client - no 1099-C, no cooperation whatsoever. I am trying to pick apart the situation - as a matter of fact, he just gave us the income/expense for the condo and there was no income for 2008 - it wasn't rented. And with preparer penalties on the rise, I am just attempting to cover all bases! | |
