Mr Smith sold one of his residential properties to a related party back in 1996. This was an installment sale. In June 2008, Mr Smith bought back the property for $6,000 and assumed $8,186 that was owed to Mr Smith. The original sale price is not available at this time but can be obtained from Mr Smith if required. Before the buyback occurred, Mr Smith received a total of $12,979 in principal payments over the years. My question is how do I treat this for tax purposes?
Mr Smith has another property that he sold on an installment basis to a related party as well. The buyer foreclosed and Mr Smith repossessed the property in August 2008. How do I treat this for tax purposes?
Mr Smith has another property that he sold on an installment basis to a related party as well. The buyer foreclosed and Mr Smith repossessed the property in August 2008. How do I treat this for tax purposes?