Help - have a 1099A on 2 different situations - same person. 1st one is a vacation ownership interest - the FMV is greater than the principal so do you report it on 4797? They could not upgrade to what association demanded so let them have it back. So loss or no loss
2nd one WAS a personal house - rented to son - took depreciation 3-4 years and son quit paying rent the last 4 years have not depreciation it due to she called the IRS and they told her not to claim it as rental - so went back to personal residence - vacate house. In 2007 they get a 1099A for FMV less than the box 2 - principal and a 1099 C for $20,372.55 but the FMV was $55000. So report it on the 4797 but what about the interest that they paid on which they have a stmt showing it and taxes and the depreciation? Does that add to basis?
Help
2nd one WAS a personal house - rented to son - took depreciation 3-4 years and son quit paying rent the last 4 years have not depreciation it due to she called the IRS and they told her not to claim it as rental - so went back to personal residence - vacate house. In 2007 they get a 1099A for FMV less than the box 2 - principal and a 1099 C for $20,372.55 but the FMV was $55000. So report it on the 4797 but what about the interest that they paid on which they have a stmt showing it and taxes and the depreciation? Does that add to basis?
Help
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