Rental Property Foreclosed Sale Price

[kpangelinan]

So, residential rental property had been foreclosed on. I'm reporting the disposition of it on 4797, but I am unsure as to what to use for the Sale Price in Box 2d.

What was left on the mortgage?

Amount the bank 1099c'd the tax payer (although 1099c had not been issued yet - foreclosed on in Dec 2010)?

FMV at time of foreclosure?

Any help would be appreciated.

Thanks,

[kpangelinan]

Bump

Bump to see if any takers....thanks.

[AZ-Tax]

I am curious as well

Guy down the street (DIY) had his rental also foreclosed on and I told him this can be complicated stuff and his reply was not a problem I can figure it out. Due to his ego, there is a 50/50 chance he calls me or drops by. There is a 90% chance his spouse calls and picks my brain as she did for their 2009 tax return and that return was simple compared to this one.

[WhiteOleander]

So, residential rental property had been foreclosed on. I'm reporting the disposition of it on 4797, but I am unsure as to what to use for the Sale Price in Box 2d.

What was left on the mortgage?

Amount the bank 1099c'd the tax payer (although 1099c had not been issued yet - foreclosed on in Dec 2010)?

FMV at time of foreclosure?

Any help would be appreciated.

Thanks,

There is no cancelled debt unless the bank issues a 1099C. Which they may not. They may decide to try and collect the money.

For the foreclosesure, you use the FMV on the 1099A as the sales price. You figure the basis for the property just as you would if it had been a normal sale. You have to account for the depreciation, etc.

[Davc]

Recourse loan? Non-recourse?

[kpangelinan]

Thank you!

There is no cancelled debt unless the bank issues a 1099C. Which they may not. They may decide to try and collect the money.

For the foreclosesure, you use the FMV on the 1099A as the sales price. You figure the basis for the property just as you would if it had been a normal sale. You have to account for the depreciation, etc.

Thank you!

[Davc]

Note the above assumes a recourse loan.

[Auto]

sales price

Isn't the sales price from the 1099-A the lower of the Balance of Loan or the FMV?

[Davc]

For a non-recourse loan the sales price is always the balance of the debt.