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Financial Planning / Tax Strategies
|Subject: Re: Need All Experts - Part II||Date: 5/29/2013 1:29 AM|
|Author: ptheland||Number: 118635 of 121801|
I received the house back in February 2012.
OK. That makes more sense.
I sold the house in 2007, taking back a mortgage (SP $82K, Mtg $77K ...). They stopped paying the mortgage in May, 2011. The Deed in Lieu was recorded in February, 2012.
The basis as of February 24, 2012, is $48,838.00
You say that is the basis, but it's probably not. If that figure is the unpaid principal on the loan or, I can guarantee you that is its NOT the basis in the property.
To calculate the basis after your repossession, you will need to look at your original basis when sold, the payments received to date, the gain recognized to date (assuming you are reporting the sale on the installment basis), and probably a couple of other things I'm forgetting.
The real estate company appraised the house in January, 2013 for $60K.
That is irrelevant.
I prepare my taxes using Tax Act, and this year (for the year 2012) will be a you know what.
This is a year when you may want to consider getting a professional - a really GOOD professional - to do your return. I've done one repossession of property in my career, so I'm far from expert. On the other hand, I know (more or less) what I'm doing, have access to plenty of professional tools, and knew about what the answer should be going into that one return. And it still took me many hours to get that one repossession done. (Way more time than I could bill for, unfortunately. But the client let me file an extension, so I wasn't putting off other returns to get that one done.)
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