Tax Research – Disposition of Property
The repossession is treated as a sale or exchange from (Foreclosures) and reported the original sale (Publication 225). The gain or loss is the difference between adjusted basis in the transferred property and the amount realized. (Publication 537), The investment land, is sold again this year will be counted as a short-term gain.
For now the gain is:
644,000-562,250=81,750$
As for the Mrs. Nittany rent property, it has been owned for more than 2 years (Gains, Reporting). It is a business property.
The gain is as follows:
Realty
338,200-41,920=296,280 $
385,000-28,750-4,293-296,280=55,677 $
Furnishing
21,400-15,000=6,400 $
15,000-6,400=8,600 $
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