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2 replies

A
Anonymous_
Employee
October 14, 2024
No text available
    M
    Mike9241
    October 14, 2024

    if you're going to report the sale as a rental property, since it is now business property the loss is ordinary not capital.   the sales price and cost flow to form 4797 and from there to schedule 1 line 4 - not to schedule D

    as a personal residence the loss is not deductible.

    on schedule E you have to report days rented at fair value which if you never rent it would be 0

    whether this reporting would create a red flag in the IRS computers is unknown. 

     

     

     

     

      A
      Anonymous_
      Employee
      October 14, 2024
      T
      taxedout1234Author
      October 14, 2024

      Thank you for your answers. Sounds like it's best to get a CPA for this kind of scenario?

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