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Old 02-08-2014, 10:52 PM
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Short sale and 1099-c reporting


I did a short sale on a rental property in 2013, and am unsure how to report this on my taxes. Received a 1099-c in the mail.

Some particulars

1099-c $211K forgiveness /$62K FMV
Original purchase price - $359K
Short sale price - $92K
Accumulated depreciation - $77K
No other basis adjustments

1. Do I need to fill out Form 982? As far as I can tell, I'm not excluding anything from gross income with regards to the sale.
2. My assumption is that I would be fine without exclusions (i.e. for insolvency). My adjusted basis ($359K-$77K=$282K) less the short sale price ($92K) = net loss on sale of $190K. Forgiveness of $211K gain - $190K loss on sale = $21K gain. I have carryforward losses that should cover this.
3. Do I just claim the income on my 1040 and let the schedule D and E losses offset the gain or am i missing something here?
4. Why is $62K reported as FMV. I have the short sale contract which clearly shows $92K as the contract price.

Any help would be appreciated.


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