Major life milestones often have a major tax impact. Changes in your marital status, having a baby or adopting a child can have significant impact on your taxes. This is the place to ask questions about dependents, real estate, and other various scenarios that play a significant role in what taxes you pay.
02-03-2017 07:10 AM
Sold a home for less than the initial investment of $41,000 and what improvements were made to it during the time of ownership $25,000. The house is valued at $66,000 minus depreciation. Now trying to determine if this is considered a loss or not and how to report it. Sold the house for $41,900 with $3100 in closing costs = $38,800 proceeds at closing before loan was paid off. Can the proceeds at closing be further deducted by the unpaid loan balance of $20,000 ($38,800 - $20,000 = $18,800) OR is the proceeds at closing truly $38,800?
02-03-2017 05:07 PM
02-08-2017 09:41 PM
I will try to answer your questions.
This was not a short sale. At one time it was our main home. We had purchased another home in 2010 with the intentions of selling the first home immediately, but the market was depressed. We finally sold it 6 yrs later (2016). We owned the home for 17 yrs and lived in it for the first 11 yrs. When it was apparent we couldn't sell the property we became landlords and it then became our investment property. When we finally sold the property, it sold for $900 less than what we had originally paid for the property. We also lost what we had made in improvements. Would my true take at closing be the purchase price minus closing costs and the remaining loan balance debt?
02-13-2017 08:43 PM