Financial Products

Financial Products

Questions about financial product options? Find discussions around a wide variety of financial service products here. Looking for your first debit card or a seasoned saver looking for tips to build your bank account, this is a great place to share and learn.

Reply
Highlighted
Pioneer
Posts: 1
Registered: ‎04-17-2018

Rental property sold on installment contract, then repossessed, and later resold

I have a Single family home that began as a rental in 1995.  It sold in Aug of 2009 on an installment contract. It was repossessed on February 1, 2016, then resold in June of 2017.  It was empty from Feb 2016 until it sold on June 14, 2017.  There was no income in 2016 or 2017 prior to the re-sale. There were expenses for both years. I did not do a schedule E with 2016 return; instead only claimed the real estate taxes on sched A.   In trying to determine how to report the final sale, I found publications 537 and 946.  As a result, I am amending the 2016 return close out the installment sale with the repossession.  I used the worksheets D and E in Publication 537 to figure the taxable gain and the basis in the repossessed property. I created a 2016 Schedule E reflecting the 31 day rental (defaulted contract reverts back to a rental) with expenses, but no income.  I also created 4562 for depreciation using the original 1995 purchase date.  This then transfers to the 2017 return where I can show that it has been sold.  Where do I put the Publication 537 worksheet D and E values?  Form 4797 is mentioned but it is not clear.  Does the less than 15-day rented rule apply on Sched E for 2017?  The installments were reflected on Form 6252 while payments were being made.  Is it required for the two years when there were no payments, or does everything just go on the Form 4797?