Harlan Lunsford <1324mnsnin65i27[at]corp.supernews.com> wrote:
- quote -

Fortunately, he can still file an amended return (and get a
refund) for 2004. What if he'd sold the property earlier?
Shouldn't a deduction of some sort be available for the
current year?

Seth

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MOC835 wrote:

- quote -

Add the net amount to your basis for reporting the sale.

ChEAr$$$$,
Harlan Lunsford, EA n LA

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I sold a rental property in 2004 to another party. After
the sale (during 2006) I was taken to court about some
unpaid water bills for the property. It turns out that that
a seperate water billing account (other then the one I was
paying on) existed for this property. To make a long story
short, the purchaser (to whom I sold the property) sued me
for the balance of this water bill.

As a result of the court case, I was ordered to pay the full
amount of the past due water bill. I also recieved a
judgement against the person I originally bought the
property as they had not paid the outstanding water bill (as
required) at the closing of my purchase of the property.

My question is simple....Can I deduct the net amount I have
to pay. (Amount I paid LESS the amount of the judgement I
received) If so, where do I report this??

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