neal

[neallove]

Note payment- principal or interest

1st deed of trust 2-1-07 120,000 8 1/2 due 2-1-10

payments were interest only

no principal payments have been paid

seller spouse died this year and the wife is totally confused

for tax purposes can I consider the payments in 2011 as principal with the idea that collection is doubtful

[thomtax]

Friendly suggestion - Put the subject matter in the title line, not Neal or something like that. I know many scan these title lines and do not even look at many of them if it is not something that they are familiar with or are looking for info about. For some reason I looked at this, but usually do not.

Without research, I do not know the answer to your question, but hopefully this will bounce it back to the top and you will get your answer.

LT

[Gary2]

Also, please write complete sentences. I have no idea whether your client is the one who made the payments or received the payments - at least not till I get to the next to last paragraph, and even then, I'm not 100% sure. That information should be in the first sentence.

[JohnH]

I'm agrreeing with the seller's wife on this one...

[JG EA]

Jg

Note payment- principal or interest

1st deed of trust 2-1-07 120,000 8 1/2 due 2-1-10

payments were interest only

no principal payments have been paid

seller spouse died this year and the wife is totally confused

for tax purposes can I consider the payments in 2011 as principal with the idea that collection is doubtful

Run an amortization schedule and you'll know the amount of interest and principal.