Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I "carriedback" a 2nd mortgage (installment sale) on the sale of a rental property a few years back. I received some cash at the time of sale and the new owners assumed the existing 1st mortgage. The 2nd mortgage was structured with interest accruing for 3 yrs, with payments beginning in the 4th year.

Unfortunately, the owners filed bankruptcy. The 1st mortgage holder received the property in court and the judge discharged the 2nd mortgage due to me.

Can I claim a loss for this and if so, how?

Thanks in advance.

Hman
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement