Question

I sold a seller financed mortgage note at a loss. How do i claim loss?

Forum|Forum|5 years ago
December 5, 2020
1 reply
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You were reporting this sale as an installment on form 6252? Or were you just holding the note and reporting the interest on your return ?

R

Roger21Author

I held a regular mortgage note on the sale of my home, not an installment sale. I claimed interest as income for the 4 years that I held the note. I did not report this sale on 6252

Critter-3

If this was a note on the sale of a personal residence where none of the sale was taxable then "selling" the note for less than what you were owed is not a deductible loss. You did not lose anything ... in the long run you just sold your house for less.