I have someone who received payments for 6 months, the buyer then filed bankruptcy and is still on the property. Is there a loss that can be claimed?
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There is probably a gain
He has a contract for deed, if not getting payments you get the property back and you are put into the exact position you had before you sold. That means all interest is income and all priciple payments become income. There are more issues, but that is the basic start The time period it takes to regain possession may taker a while. If he stopped paying the seller gets it back.
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