Randall Posted February 25, 2012 Report Share Posted February 25, 2012 Client received the $7500 credit in 2008. Paid $500 back in 2010. Filed bankruptcy in 2011, bank took back home. Am I correct in using balance of unpaid loan as 'selling price' and calculating gain or loss on 5405? Or is there a special exception for bankruptcy that would eliminate pay back of credit? I'm still waiting on some info from client and I'm thinking there will be a loss eliminating the pay back anyway. But I wanted to throw the topic out for response. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted February 26, 2012 Report Share Posted February 26, 2012 Check this out: http://www.irs.gov/newsroom/article/0,,id=206292,00.html MAS Quote Link to comment Share on other sites More sharing options...
Randall Posted February 26, 2012 Author Report Share Posted February 26, 2012 Thanks. That's what I was seeing too. I'm waiting for more info on the purchase amounts (wasn't my client in 2008, year of purchase). I think basis will be $7000 (amount of unpaid credit) over 'selling price'. Quote Link to comment Share on other sites More sharing options...
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