Taxpayer received a 1099-A for rental in 2010. She filed bankruptcy on rental in 2010 and bankruptcy became final in January 2011. Taxpayer said her attorney has said she does not need to file anything on her tax return regarding the rental due to the bankruptcy. I would think being it was a rental and rental has been disposed of, a 4797 needs to be filed for 2010. But I am unsure how I should complete the 4797. If the rental was included in bankruptcy, how would you report? The taxpayer would have a gain on property:
Basis of rental: $170,000
Dep: - 30,000
Net Basis: $140,000
Box 4 of 1099-A shows $178,500
Any direction would be appreciated.
Basis of rental: $170,000
Dep: - 30,000
Net Basis: $140,000
Box 4 of 1099-A shows $178,500
Any direction would be appreciated.
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