Tax question?


#1

I got back two LD’s this year. One through eviction the other the people simply gave it back to me.

My accountant says that I know have phantom income that tax needs to be paid on. She says that if I sold the home for $15K and got it back that I owe tax on the $15k minus my original cost basis plus any cost with getting it back.

She showed me the code from the IRS book but it dealt with convential homes not mobiles.

Let me hear it.

Thanks

Wayne


#2

That may be correct, depends on certain facts to which I am not privy, such as how the sale was reported on the return (Installment Sale on Form 6252 or dealer property on Schedule C, etc.) to begin with and how much the home is worth in cash.

Post Edited (11-24-08 04:20)