First of all, let me thank those who have contributed in this board on the subject. I'm getting better informed, but not there yet...My situation is as follows:In December of '99, we found our "dream house" (the 13th time in our 24 years of marriage). Domestic tranquility at stake, I told my wife, who is a realtor, to just "buy it". We were fortunate and got it for a very good price. However, we were unable to find a buyer for our former residence.We did find a couple willing to rent the propery and who signed a rental contract from December, 1999, through May, 2000. In my 1999 return I reported rental income of $1026 for December and expenses of $7405 (including $1132 depreciation), for a loss of $6379.Things went well until the renters found a property to buy. They moved out in April and left without paying the last month. I then put the propery back on the market and negotiated a wrap-around deal (All Incluseve Trust Deed). The new owner moved in on June 14, 1999. He payed me a sum up front and continues to pay all related expenses (principal, interest, taxes, etc.), with the balance due June 14, 2002. This relationship is working very well, with all payments received in a timely manner. With the interest rates now becoming attractive, we are planning on having the AITD contract terminated this August.If you have read this far, thanks for your interest.Now, here's my problem. I used "Turbo Tax" for my 2000 return. It treats my rental and then sold (installment sale) property as income, and makes no provision for the fact that the property was my main residence, as I believe it still qualifies. The tax implication is enormous!I opted for treating the transaction as a wash (no effect on my income), payed the resulting tax obligation, and filed for an extension until I find out how to properly report.I have therefore bought some time. I'll try to get educated enough to file the proper return. If not able to handle it myself (I do have an MBA, for whatever it's worth), I will contract to have the return prepared.I would be sincerely grateful for any input from the learned contributors of this board.Thanks and best regards,RSL41
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