How Do I File A Real Estate Tax Sale Property?

[taxstrategist]

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!

[Carl]

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.

[taxstrategist]

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?

[AnnetteB6]

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.  

@taxstrategist

[taxstrategist]

Thank you both for your help!