The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Need All Experts - Part II Date:  5/28/2013  4:57 PM
Author:  Donna405 Number:  118628 of 127613

Now, for the house in Florida.

1. On February 22, 2013, I received my house back after obtaining a Deed in Lieu of Foreclosure. I advised the resident at that time, she could stay there until July, rent free. However, if she wanted to stay longer, she would have to pay rent. I did receive $200.00 from her, but no more. In August of 2012, I had an attorney file eviction proceedings, and I received the house back in November, 2012. Upon receiving the house back, we discovered that the tenant had trashed the house....FULL of roaches and fleas and just generally trashed, with refuse all over the house. I had to get an exterminating company to come in twice to spray, bomb and apply gel for the roaches and fleas. I had a hauling company go in and remove the refuse. After the house was cleared, I went down at the end of November, with a friend who is a contractor, and we stared work. I was fully planning to rent the house again for income during my old age. In December, 2012, I had the roof replaced.

2. In January, 2013, my friend and I went back down and completed the rehab of the house. At that time, I approached a real estate company about (1) Selling or (2) using them as a rental agent. They advised me to place it on the market for sale first, and if that did not work, they would be happy to be my rental agent. During that time (2013) we completed the rehab of the house and I placed it on the market for sale, after obtaining an appraisal.

3. The house has now sold for less than the appraised and currently assessed value (cash sale), and it will close around the middle of June. As a note, the assessed value increased for 2013 due to the new roof.

How will I treat this house for 2012 and 2013 for tax purposes?

Donna (who will be happy to supply more info if needed)
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us