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A rental house was sold with an owner contract several years ago. Annual principle is being reported on Form 6252, with gross profit slightly over 90%. During 2010, seller reduced the interest % and also reduced the principle on the note by over 13% of its original value.

Do I recalculate the profit %? Or (doubtful) is this reduction in profit a 2010 deduction somewhere? Or does it just fall off the end of life of the loan when payments stop?

I've scanned instructions for 6252 and don't see this issue. Pointers to the appropriate pub appreciated - I know this is a busy time to ask for help.
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