indestructo
Mar 13, 2011, 10:27 AM
I have a fairly tricky situation. We foreclosed on a rental house in July last year. We had the house listed for under $30,000 for nearly all of 2010. The house is in one of the hardest hit areas effected by the recession. Box 4 on my 1099-A reports $98,000 for fair market value. I have also noticed that this value is now listed on the assessors information. It appears on the assessors information that the bank assumed ownership of the house through sheriff's deed for that FMV. Even if we put the $30-40,000 into the house to rehab it, we're still only looking at a FMV in the $70,000 range. One last detail, the house still isn't sold.
With my deductions my adjusted basis ends up around $84,000 with the amount in box 2 listed as $94,000. I've listed my gain as the FMV - adj basis. I've seen other information that says Box 2 - adj basis. What is the right way to go?
I also want to contest the FMV on the 1099 but my thought is that there may not be enough time. If I do have to go with FMV - adj basis, can I pull sales of comparable properties from July and use that as evidence that the FMV is much too high?
Thanks a bunch in advance! This has been plaguing my thoughts lately.
With my deductions my adjusted basis ends up around $84,000 with the amount in box 2 listed as $94,000. I've listed my gain as the FMV - adj basis. I've seen other information that says Box 2 - adj basis. What is the right way to go?
I also want to contest the FMV on the 1099 but my thought is that there may not be enough time. If I do have to go with FMV - adj basis, can I pull sales of comparable properties from July and use that as evidence that the FMV is much too high?
Thanks a bunch in advance! This has been plaguing my thoughts lately.