Discussion:Abandonment of rental

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Discussion Forum Index --> Tax Questions --> Abandonment of rental

Taxlady33 (talk|edits) said:

13 February 2007
I have a client who abandoned a rental. Their 1099-A shows an outstanding loan balance of $50,000 and an fmv of $58,000. Their adjusted basis in the rental is $46,000. Do they have a taxable gain of $4,000, since their basis is less than the debt abandoned? Do I report it like a sale of $50,000?

Deback (talk|edits) said:

February 13, 2007
Yes, report it as if they sold if for $50,000.

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