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Owner financed foreclosure

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SLeonhard Guest	Posted: Tue Apr 19, 2011 6:23 am    Post subject: Owner financed foreclosure Like 0 Dislike 0 We owner financed the sale of our property in the summer of 2008 for $450K. We were given $150K downpayment -- which we paid taxes on. The buyer defaulted on his first payment a year later, and so we foreclosed with him still owing us $300K plus legal fees. The market has since dropped severely and we are now forced to resell the property for $260K. How do we figure capital gains tax on the final sale of the property? We're hoping there will be no gains, since -- in the end -- it was a loss of over $40K. Thanks! Suzanne L. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
dipaligopale Joined: 25 May 2010 Posts: 790 22.70 Dollars($)	Posted: Tue Apr 19, 2011 8:13 am    Post subject: Like 0 Dislike 0 Hi SLeonhard, Welcome to Mortgage fit, In first instance you have not completed the deal,just the down-payment that also went to tax payments (although not in full) so in this whole deal you haven't gained any profit so there is no question of paying taxes for it. Rather you can avail tax benefit for the losses in the real estate deal. Apart from this I will suggest you to take a third opinion from a CPA and then you should go ahead. Feel free to ask any further query if you have......... DIPA _________________ 1.The best of intentions must still have directions !--Unknown author 2.When I hear somebody sigh, "Life is hard," I am always tempted to ask, "Compared to what?" - Sydney J. Harris
gmakerley Community Mentor Joined: 09 Nov 2007 Posts: 12376 Location: bloomfield, ct 58.49 Dollars($)	Posted: Tue Apr 19, 2011 10:45 am    Post subject: Like 0 Dislike 0 I'm in agreement with Dipa as far as your needing to get advice from a tax professional. _________________ George M. Akerley Mortgage Underwriter/Consultant Word of Excellence- Writing/Editing/Proofreading 860-221-5044

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