I have a client who filed and closed a Chapter 7 Bankruptcy in May of last year. The banks were to take all of the properties. There were 9 rental properties, 6 received 1099A's, the earliest one was dated in July. In searching the local Real Estate records we found out that one of the properties was just transferred out of their name last week, March 10, 2014.
I know that we have to sell the properties on form 8949.
Can I use the closing of the Bankruptcy as the date of sale, even though the banks involved did not act on the loan cancellations until later?
I want to sell them as of the Chapter 7 closing date in May, which gives us a clean list of assets and liabilities and shows without a doubt that the client was insolvent.
Thanks for any assistance you can give.
I know that we have to sell the properties on form 8949.
Can I use the closing of the Bankruptcy as the date of sale, even though the banks involved did not act on the loan cancellations until later?
I want to sell them as of the Chapter 7 closing date in May, which gives us a clean list of assets and liabilities and shows without a doubt that the client was insolvent.
Thanks for any assistance you can give.