A person has had an installment sale on land in SC for over 15 years. The buyer defaulted this year. A lawyer is handling the default on this sale. When the installment sale is executed again with a new buyer what needs to be done.
1) Is the basis on the land the same as orginally? No improvements were made on the land other than having many of the trees cut by the original buyer. The owner plans on planting seedlings before selling the land again.
2) No depreciation is involved on this property?
3) None of the income todate is reported again. The new sale is figured on the 6252 as a new sale with the original basis. Or should the basis be figured again as the fmv when the original buyer defaulted on the loan?
Thanks for your input..
1) Is the basis on the land the same as orginally? No improvements were made on the land other than having many of the trees cut by the original buyer. The owner plans on planting seedlings before selling the land again.
2) No depreciation is involved on this property?
3) None of the income todate is reported again. The new sale is figured on the 6252 as a new sale with the original basis. Or should the basis be figured again as the fmv when the original buyer defaulted on the loan?
Thanks for your input..
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