our rental property foreclosed back in Sept 08. The bank just sent us a 1099-c for the fair market value and

Asked by F Eddie, San Francisco, CA Thu Feb 5, 2009

the amount of debt that was canceled but they have not yet sold the property. If we file our taxes and close-out all of our depreciated expenses, legal fees, and other exps on the property without the bank having yet sold the property ever being sold, then can the bank eventually send us some kind of capital gains notice if the home sells for a price above our basis value?

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Dallas Texas, Agent, Dallas, TN
Fri Feb 6, 2009
Banks are not in business sale property for profit, you need have your taxes completed by a CPA who knows how to handle these types of returns. You may have a tax write offs you are not aware of. GREAT QUESTION
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Jed Lane, Agent, Petaluma, CA
Thu Feb 5, 2009
You need to talk to a CPA or a tax attorney. Any advice you get from an agent other than that opens the brokerage up for liability.
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Steven Ornel…, Agent, Fremont, CA
Thu Feb 5, 2009
F Eddie, sounds like a great question for a Real Estate Tax Lawyer. This is probably not the best venue for getting such an important question answered.

Best, Steve
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