Tips on Property Investment|The Best Investment Properties Advice
Nov
12
Dan N asked:
Hi. I received a 1098 substitute form in the amount of $2000 for interest on an investment property loan. Funny thing is, I sold that property on Dec 30, 2005. So for my 2005 tax return, I submitted a form 4797 for the sale of the property. So maybe the loan wasn’t paid off right away and interest accumulated in 2006. The 2006 interest must have been paid from the closing costs… after the closing on Dec 30, I did not personally pay for any additional expenses on the property. So how do I report what would normally be a business expense of $2000 for a property that I never owned in 2006? Or maybe I should not include the 1098 in my 2006 return since I did not pay anything on that loan in 2006???
Hi. I received a 1098 substitute form in the amount of $2000 for interest on an investment property loan. Funny thing is, I sold that property on Dec 30, 2005. So for my 2005 tax return, I submitted a form 4797 for the sale of the property. So maybe the loan wasn’t paid off right away and interest accumulated in 2006. The 2006 interest must have been paid from the closing costs… after the closing on Dec 30, I did not personally pay for any additional expenses on the property. So how do I report what would normally be a business expense of $2000 for a property that I never owned in 2006? Or maybe I should not include the 1098 in my 2006 return since I did not pay anything on that loan in 2006???
Thanks for any good advice.
Leonard
Comments
April Z on 12 November, 2008 at 10:12 am #
If you get taxes prepared by someone, just tell them about it. Then you have nothing left uncovered.
tma on 13 November, 2008 at 8:27 pm #
what you say is probably exactly what happened. if you reported this sale in 2005, you dont have to record this on your 2006 tax return.
you could pick it up on schedule A as investment interest paid. however, it would not be deductible unless you had investment income.
Post a Comment
