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Tax help for rental property debt cancellation

Posted May 19th, 2010 by admin

According to Revenue Ruling 92-92 and page 3 of IRS Publication 4681, cancellation of debt attributable to passive activity expenditures, such as purchase of the rental property, is passive activity income. For a rental property, the debt cancellation income should be included on line 3 of Schedule E as “rental income” for the property.

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Filed under:Real Estate, Tax matters

California cancellation of debt conformity vetoed

Posted March 29th, 2010 by admin

Governor Schwartzenegger vetoed SBX8 32 last Thursday, March 25, 2010. The bill included many provisions conforming California tax laws to Federal tax laws, including a limited conformity to an exclusion from taxable income for cancellation of debt for a principal residence.

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Filed under:Real Estate