Discussion:Report a Loss on Sale of Real Estate

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Discussion Forum Index --> Tax Questions --> Report a Loss on Sale of Real Estate

Mll (talk|edits) said:

13 March 2006
How do I report a loss on the sale of a commercial real estate? my client purchased the property in 2000 for $640,000 and sold it in 2005 for $450,000 to save it from foreclosure.

JR1 (talk|edits) said:

13 March 2006
Well, not meaning to be rude, but have you done this before? If it's rental property, use the asset sheet to enter the sale amount and costs...and it'll do the rest. Manually, it'll end up on Form 4797...If it's used in a biz, the answer's the same, actually, but it'll be reported by the biz first and then flow thru...

Mll (talk|edits) said:

13 March 2006
It was a commercial property that was abandoned by her dad. He transfered title to her and she was forced to sell it. would this be reported on form 4797? what would be her basis?

JR1 (talk|edits) said:

13 March 2006
If dad was alive when she got it, the fair market value at his death. If he was alive when she got it, oh, and you did say he transferred title, so this is it...whatever his cost basis in it was. Probably what he paid for it plus any improvements and closing costs...and be sure to deduct the selling expenses/closing costs on the sale end. But yes, Form 4797, if a gain, page 2, if a loss, page 1.

Good luck.

Mll (talk|edits) said:

13 March 2006
Thank You :)

Dennis (talk|edits) said:

14 March 2006
basis for loss is lower of fmv or donor's basis. should be some accumulated depreciation,

JR1 (talk|edits) said:

14 March 2006
Another good reason to use good software!

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