Message Font: Serif | Sans-Serif
No. of Recommendations: 4
Does it matter what I list as my address on my final contract documents when I sell my townhome? Are there any tax advantages/disadvantages or does it really matter?

Yes, it matters. Putting other than your correct current address on the papers could be construed in some circles to be fraudulent, especially if it was done to reduce your tax exposure.

As you noted, for Federal purposes you'll have income equal to the depreciation. It sounds like you're currently a NY resident, so no doubt they'll want their cut. Whether CO will also want something I can't tell, knowing nothing about CO income tax. You also have part-year residency in CA, if you had income during your stay there.

In short, your 2002 taxes look to be a mess. I always advise use of a paid preparer when rental property is sold. (If you doubt me, grab a copy of Form 4797 and its clear-as-a-bell instructions.) In your case, I think a paid preparer is even more needed because of the multi-state considerations.

Good luck.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.