Rental House has been forclosed client walked away non-recourse loan no 1099-a or c.
I spoke with Lacerte about how to get rid of this rental this year and here is how they told me to do it I have three deprecation assets the house, land and cabinets, property has no income at all and no expense at all except that they had depreciation:
Step 1: Go to the rental screen and put a 2 in delete next year. This part ok I get
Step 2: Go to the deprecation screen and under General Disposition Information enter date disposed. Ok sounds good
Step 3: In deprecation screen under sale of Asset put sales price as -1 = none. ok
Step 4: Go to forms and look at the 4797 look at box 2 Q gain or loss write down that number. Ok Getting a little confused now in my case the number was -148000
Step 5: Go back to detal in the deprecation screen General disposition Information put the -148000 as a Basis adjustment. Ok this just is not working in my mind right is this really right to do?
Step 6: go back toe the forms 4797 and now box 2 Q is now 0.
I am just not understanding this concept so they have no gain or loss is this right? Don't I need to recapture any prior depreciation? Do they still get to write off the deprecation for the days before they lost the house even though they have no income? I don't know if I have been up to many hours or what but for some reason this is just not clicking with my mind
I spoke with Lacerte about how to get rid of this rental this year and here is how they told me to do it I have three deprecation assets the house, land and cabinets, property has no income at all and no expense at all except that they had depreciation:
Step 1: Go to the rental screen and put a 2 in delete next year. This part ok I get
Step 2: Go to the deprecation screen and under General Disposition Information enter date disposed. Ok sounds good
Step 3: In deprecation screen under sale of Asset put sales price as -1 = none. ok
Step 4: Go to forms and look at the 4797 look at box 2 Q gain or loss write down that number. Ok Getting a little confused now in my case the number was -148000
Step 5: Go back to detal in the deprecation screen General disposition Information put the -148000 as a Basis adjustment. Ok this just is not working in my mind right is this really right to do?
Step 6: go back toe the forms 4797 and now box 2 Q is now 0.
I am just not understanding this concept so they have no gain or loss is this right? Don't I need to recapture any prior depreciation? Do they still get to write off the deprecation for the days before they lost the house even though they have no income? I don't know if I have been up to many hours or what but for some reason this is just not clicking with my mind
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