I purchased a rental home a few years ago. Last year I sold it for a small profit. When I got the 1099 it made it seem as if I got the entire amount of the sale price but it does not take into account that the mortgage on the house was paid off and I only got the remaining amount of the money. Where do I put this on my taxes for the 2006 tax year.
I want (need) my taxes to reflect that I did not get the entire sale price////thanks in advance
2007-03-12 17:32:12 · 4 answers · asked by lisa s 6 in Business & Finance ➔ Renting & Real Estate
Don't worry about the 1099, that's just the title company letting the IRS know you sold a property (and for how much). You report the sale of a rental property on Form 4797 (Sale of business property). That form has a worksheet that helps determine your profit on the property (and hence the taxable amount).
If you're not familiar with all the tax laws regarding rental properties (i.e. depreciation, determining cost basis of the land and the structure, etc) you'd be well off consulting a CPA, or at the lease using a program like TurboTax that can guide you through filling out the form.
2007-03-12 17:40:52 · answer #1 · answered by SndChaser 5 · 1⤊ 0⤋
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2016-07-20 09:44:22 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Call the IRS, they will tell you all the forms you will need to fill out for the costs and the actual amount you did not profit from. I would take mine to an experienced tax person, H-R Block actually has them you just have to ask for an experienced person up on all the new laws. That is the best way to get the most and pay the least, really. It's worth paying for and you can deduct the codt next yr. for having to pay for having them done. good luck.
2007-03-12 17:52:49 · answer #3 · answered by MISS-MARY 6 · 0⤊ 1⤋
Rent-To-Own Homes : http://RentToOwnHome.uzaev.com/?hiYZ
2016-07-12 01:31:09 · answer #4 · answered by ? 3 · 0⤊ 0⤋