Abandonment loss - Posted by Erick

Real Estate Investing Real Estate Law
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Posted by Erick on April 12, 2004 at 09:46:03:

For more info on this…see this article.
http://www.taxresourcegroup.com/library/memo/1222.html

This article argues that the defensibility of taking an abandonment loss hinges on the degree of connection between the piece purported to be abandoned and the structure as a whole. I would then say that taking a loss on disposing of the remaining portion of a roof is more aggressive than taking a loss on disposing a furnace.

Anyone awake out there…or maybe a better question…does anyone care about this type of issue. By the way, the RE tax guru, Albert Aiello supports taking abandonment losses in much the same way and I’m just trying to get comfortable with it and start a discussion on it with ppl here.

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Abandonment loss - Posted by Erick

Posted by Erick on April 08, 2004 at 22:54:57:

Does anyone have an opinion on taking an abandonment loss for disposing or retiring certain components of real estate? For example, say you purchase a property and you decide to dispose of the old furnace which you estimate still has a value of $200. Would anyone use form 4797 to take a loss on this disposal/retirement? Or, is there another form to use for doing this?
Anyone have an opinion as to the aggressiveness of this approach?