Hey there,
So I had a real estate property that I did not want to have anymore. I stopped paying taxes on it and in 2021 somebody purchased it at a tax sale. I got no money for it so there was no capital gain or loss. I am wondering how I am supposed to file the sale of this property. I am in the state of Pennsylvania if that matters.
Thanks for your help!
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Just because the property was purchased at a tax sale, does not mean "you" sold anything. Therefore, you have absolutely nothing to report or claim on this property on any tax return.
Thanks for your response! So I don't have to let the IRS know that I no longer own the property? I was going to mark it as sold and just put a 0 down next to Asset Sales Price and a 0 next to Asset Sales Expenses to even it out since I made no money and lost no money during the transfer of ownership. Is that something I can do or should I just leave it blank and not mark it as sold?
No, you do not have to notify the IRS that you no longer own the property. It would be better to leave it off of your return completely instead of reporting a transaction with all zeroes.
Thank you both for your help!
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