Question

I had a personal note, The note was for $240,000 but I only got $140,000. Can I write off a $100,000 loss?

Forum|Forum|4 years ago
June 6, 2022
2 replies
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The note was for the sale of a piece of land. I carried. The person stopped paying me monthly payments so I foreclosed. The person owing me the loan/note on the property (Deed of Trust) was the only one that showed up at the foreclosure action. They offered $140,000. They gave me $140,000 for the $240,000 of what they owed me. I did not get the property back. I took a $100,000 loss. Can I write off this loss?

TurboTax Premier Online

M

Mike9241

duplicate. no because you got property back

Critter-3

Duplicate post ... if you don't understand how to handle this situation please seek local professional assistance with someone versed in repossessions.

T

TomD8

Employee

The tax consequences can be a bit complicated. This website might be helpful, but you may need to see a tax professional:

https://thismatter.com/money/tax/repossessions-taxation.htm

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

Critter-3

If you foreclosed on the property that the lien was against and you did not get the underlying property back then you really need to seek local professional assistance.