Question

I sold property in 2013 on an owner contract this year I had to foreclose because they quit making payments How do I show this on my tax return and which form do I use?

Forum|Forum|7 years ago
June 4, 2019
2 replies
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I sold property in 2013 on an owner contract - I have claimed the income each year on my taxes - this year I had to foreclose because they quit making payments - the title company tried to have a sherriff's sale but no one showed up so I had to repurchase or repossess the property - there were expenses for an attorney, for the title company, property taxes that I had to pay. How do I show this on my tax return and which form do I use?

R

ripleyfrisco

I need the same answer

R

RichardG

Employee

If you repossess your property after making an installment sale, you must figure the following amounts.

Your gain (or loss) on the repossession.
Your basis in the repossessed property.

These are fairly complex calculations, but the IRS provides worksheets to make the calculations in Pub 537. Your out of pocket expenses for repossessing the property are all taken into account in these calculations. Please follow this link for more information. https://www.irs.gov/publications/p537/ar02.html#en_US_2016_publink1000221736

B

bbennettpac-gmail-comAuthor

I can figure the gain (loss) and the basis - what I need to know is if I had to repurchase the land what forms do I use and what date do I use for the sold date?