Need 1099-A Help!!!!

[cathe]

I see that past 1099-A questions have been left dangling. Client bought a house years ago, lived in it for a while, had a job change, rented it for a while and has done nothing with it for several years. Finally couldn't continue the payments.
Now we have a 1099-A with no accomanying 1099-C. Where the heck does this information go on a return? My research skills must be zero. Everything I look at does NOT address my question. Box 4 FMV is higher than Box 2 balance outstanding.

Cathe

[solomon]

I see that past 1099-A questions have been left dangling. Client bought a house years ago, lived in it for a while, had a job change, rented it for a while and has done nothing with it for several years. Finally couldn't continue the payments.
Now we have a 1099-A with no accomanying 1099-C. Where the heck does this information go on a return? My research skills must be zero. Everything I look at does NOT address my question. Box 4 FMV is higher than Box 2 balance outstanding.

Cathe

See Pub. 4681. There will be no COD because FMV (assume that was sale price) is more than the debt. Report it as a sale.

[cathe]

clear as mud

Are you saying to use the FMV as the basis and fill this out on Sch D? I know that there can be no loss on sale of home.

Cathe

[WhiteOleander]

Are you saying to use the FMV as the basis and fill this out on Sch D? I know that there can be no loss on sale of home.

Cathe

No, you use the FMV as the sales price. You figure the basis in the same way you would if it had been a normal sale. Since this is no longer his personal residence, any gian cannot be excluded. A loss might be allowed if it was investment property.

[solomon]

Are you saying to use the FMV as the basis and fill this out on Sch D? I know that there can be no loss on sale of home.

Cathe

Have you bothered to read the Pub. 4681 and 544?