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Level 1
May 3, 2020

Installment sale

  • May 3, 2020
  • 1 reply
  • 11 views

My client sold real estate 1-15-15.  It is reported as installment sale income.  He refinanced on 6-6-19 for purchaser, but used the incorrect amount as the beginning balance, $9,000 less than the actual amount owed.  If the basis stays the same as the original amount, there will be a $42,700 loss.  Does the basis change?

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    1 reply

    George4Tacks
    Level 15
    May 3, 2020

    Review https://www.law.cornell.edu/cfr/text/26/1.1001-3

    The numbers in your question make absolutely no sense to me. Which software are you using?

     

    Answers are easy. Questions are hard!