Foresclosure purchase/sell

[gereynolds]

Where and how do I post the purchase of a foreclosure that I had to sale to pay off other liens against the property? I have an LLC.

[RobertB4444]

Did you purchase a foreclosed property?  Because you don't have to enter that except to depreciate it if it is a business use property.

If this is a property that you sold as a foreclosure then you would enter the sale as a sale of a business asset and then enter the amount that you received as a sale price.  

@gereynolds 

[gereynolds]

 I purchased a foreclosed property, and it had liens that had to be paid so I sold the property and paid off the liens after doing some repairs.  Where and how would I enter this in Turbo Tax?

[LindaS5247]

You can report a "Sale of Business Property" using the instructions listed below.

You can enter your sale of business property as follows:

1. Click on the search icon in the upper right of your TurboTax screen
2. Type "sale of business property" in the search box
3. Click on the link "Jump to sale of business property"
4. Follow through your screens and answer all of the follow-up questions about your sale.

This will create a Form 4797 Sales of Business Property for your return.

If you are using TurboTax Desktop, you can view this form as follows::

1. Click on "Forms" in the upper right corner of your TurboTax screen to switch to Forms Mode
2. In your left panel under "Forms in My Return"
3. Scroll down to "Form 4797 Sales of Business Property"
4. Click on the form and it displays in your right panel
5. In the bottom left of the form in your right panel click on "Delete Form"

Your screen will look something like this:

Type "sale of business property" in your search bar:

Form 4797 Sales of Business Property:

If you have additional information or questions regarding this, please return to Community and we would be glad to help.