Question

Foresclosure purchase/sell

Forum|Forum|1 year ago
March 19, 2025
1 reply
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Where and how do I post the purchase of a foreclosure that I had to sale to pay off other liens against the property? I have an LLC.

Ask the Experts - Changes II - Mar 2025

Did you purchase a foreclosed property? Because you don't have to enter that except to depreciate it if it is a business use property.

If this is a property that you sold as a foreclosure then you would enter the sale as a sale of a business asset and then enter the amount that you received as a sale price.

@gereynolds

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gereynoldsAuthor

I purchased a foreclosed property, and it had liens that had to be paid so I sold the property and paid off the liens after doing some repairs. Where and how would I enter this in Turbo Tax?

LindaS5247

You can report a "Sale of Business Property" using the instructions listed below.

You can enter your sale of business property as follows:

Click on the search icon in the upper right of your TurboTax screen
Type "sale of business property" in the search box
Click on the link "Jump to sale of business property"
Follow through your screens and answer all of the follow-up questions about your sale.

This will create a Form 4797 Sales of Business Property for your return.

If you are using TurboTax Desktop, you can view this form as follows::

Click on "Forms" in the upper right corner of your TurboTax screen to switch to Forms Mode
In your left panel under "Forms in My Return"
Scroll down to "Form 4797 Sales of Business Property"
Click on the form and it displays in your right panel
In the bottom left of the form in your right panel click on "Delete Form"