IRS and BK /Rental Property

[bellessima]

I was discharged in July 2010 CH 7 which included rental properties.

I did receive a 1099-A

How do I file my 1040 for 2010.

Just as a regular 1040 or do I need to file another form showing the BK for the rentals.

Merci beaucoup

[HHM]

Here you go

What to do with 1099-A on investment property after foreclosure and bankruptcy.

[porkchopcash]

I am good with this article about 1099 after foreclosure on rental. My accountant initially said that I would have the cancellation of debt income but it would be offset by the loss on the houses when they are sold at FMV. She is wrong and my research backs up everything this article says.

However, I have a depreciation question. If the foreclosures do not complete until October of the year, then technically the houses were still in my name up until that time. Do I get to take 10 months depreciation off my taxes for those properties?

[HHM]

You will really need to look at the rules on depreciation. I don't know the answer off the top of my head. One thing to be mindful of...if you depreciate, that depreciation will affect your "adjusted basis" for calculating a gain/loss in the 1099-A scenario.

Here is what I found

http://www.irs.gov/publications/p527/index.html

[justbroke]

This is not easy stuff and if your accountant doesn't understand it, you should get another accountant. There is a minefield of issues with recaptured depreciation, calculating cost basis, and just what is FMV, that will drive any tax specialist crazy.