tax consequences: Repossession of Seller Financed Property - 04/23/08 10:16 AM
A gain is recognized when property is reacquired.
The Seller, on a seller financed property,  when reacquired now has all the payments previously made by the ex-buyer plus the property back. he government says that this is now all taxable gain. This is only limited to gain already realized.
The gain upon reacquisition is equal to the cash and fair market value of the property received by the seller prior to the acquisition, less gain previously reported.
Have a good day. 
(5 comments)

tax consequences: Short Sales a Dialogue - 08/23/07 02:35 PM

 
Over the next few posts I will be documenting the short sale process. The short sale or "seller and lender both lose, but share the grief".
From the 4th quarter 2007 through 2008, there will be a mortgage delinquency not yet experienced in history. One might look back to the depression era, but then 30 year mortgages were an experiment. Your friendly neighborhood politician may come to the rescue, but you can bet there will be a lot of strings that you may not be able to grasp on to.
I will be writing on 1. selecting your representative in the short sale … (0 comments)

tax consequences: Repossession of Seller Refinanced Property - 07/26/07 08:54 AM
 
When a seller forecloses on property sold in a installment contract, there are some tax consequences.
 
 Gain is recognized when property is reacquired.  The IRS recognizes all payments received as taxable gain.  The gain upon reacquisition is equal to the cash and fair market value of the property received (foreclosed) by the seller (lender) prior to the acquisition less any gain previously recognized.
 
This presents a problem in that the repossessor has incurred some expenses in reacquiring the property and receives no cash in the process.
 
If a homeowner repossesses a principal residence where the $250,000/$500,000 exclusion was used, the repossession gain tax is … (0 comments)

 
David Spencer, Show Me real estate in Kansas City (Keller Williams Northland)

David Spencer

Show Me real estate in Kansas City

Kansas City, MO

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Keller Williams Northland

Address: 800 E Northwest Highway, Suite 200, Palatine, IL, 60074

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