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Subject:  Re: Need All Experts - Part II Date:  5/29/2013  1:29 AM
Author:  ptheland Number:  118635 of 123001

I received the house back in February 2012.

OK. That makes more sense.

I sold the house in 2007, taking back a mortgage (SP $82K, Mtg $77K ...). They stopped paying the mortgage in May, 2011. The Deed in Lieu was recorded in February, 2012.

The basis as of February 24, 2012, is $48,838.00

You say that is the basis, but it's probably not. If that figure is the unpaid principal on the loan or, I can guarantee you that is its NOT the basis in the property.

To calculate the basis after your repossession, you will need to look at your original basis when sold, the payments received to date, the gain recognized to date (assuming you are reporting the sale on the installment basis), and probably a couple of other things I'm forgetting.

The real estate company appraised the house in January, 2013 for $60K.

That is irrelevant.

I pr