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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] My Seller Carry Back Went Bad, Carry Loss Forward Taxes? Posted by notconor on December 08, 2009 at 9:01 PM I want to know if I can carry forward a loss on a seller carry back note? And if so whats the accounting for taxes and IRS? (Disclaimer: No reply postings will be taken as advice, merely conjecture.) I have a seller carry back note on a property that I flipped in January of 2007. The market was crashing and no lender would do a 2nd, so I carried the 10%. (Oddly the lender that did the 1st closed its doors the day after funding!) As an Example: The house was sold and most of the invested money was paid back except for $2,000, which is tied up in a seller carry back. 2nd TD note is $32,000, 10% I/O and the actually cash invested is $2000. Thus a $30,000 profit paid over 10 years. This is a California Purchase, so no Recourse. 1st Foreclosed, borrowers went CH 7 then AWOL. Lets say they made $750 worth of payments. I have not spoken to a tax accountant and am interviewing some now, and I hope to have an answer so that I can gauge the knowledge of the accountants. I have not been able to find an answer online, as you can imagine most online info is geared towards the defaultor not the defaultee. :) I figured there are others out there pondering this... Follow Ups: Re: My Seller Carry Back Went Bad, Carry Loss Forward Taxes? dond 6:10 AM, 12/09/09 (0) Post a Followup: Name : E-Mail : Subject : Comments: : I want to know if I can carry forward a loss on a seller carry back note? And if so whats the accounting for taxes and IRS? : : (Disclaimer: No reply postings will be taken as advice, merely conjecture.) : : I have a seller carry back note on a property that I flipped in January of 2007. The market was crashing and no lender would do a 2nd, so I carried the 10%. (Oddly the lender that did the 1st closed its doors the day after funding!) : As an Example: : The house was sold and most of the invested money was paid back except for $2,000, which is tied up in a seller carry back. 2nd TD note is $32,000, 10% I/O and the actually cash invested is $2000. Thus a $30,000 profit paid over 10 years. : This is a California Purchase, so no Recourse. 1st Foreclosed, borrowers went CH 7 then AWOL. Lets say they made $750 worth of payments. : I have not spoken to a tax accountant and am interviewing some now, and I hope to have an answer so that I can gauge the knowledge of the accountants. : I have not been able to find an answer online, as you can imagine most online info is geared towards the defaultor not the defaultee. :) : I figured there are others out there pondering this... [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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