ljwalters Posted April 5, 2012 Report Share Posted April 5, 2012 Tax payer baught property, and the seller carried the note. Okay so far. Seller found out he had cancer and doesn't expect to live long enough for the loan to be paid off. (in other words he'll never see his money). Seller had taxpayer agree to make payments to cancer society after his death. So now seller dies. payments go to Cancer Society. How do you report the interest? LInda PS I'm to tired for this bleep. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted April 5, 2012 Report Share Posted April 5, 2012 First sorry to hear about that awful word cancer, it seems the financing seller whats the payments to go to the Cancer Society as a donations? I don't think the Cancer Society would like to get involved in real estate deals, but I might be wrong. In case they don't, I would see it very difficult for the buyer deducting the interest, the seller might hand over the title to the buyer and in good faith have the buyer donate to the Cancer Society. Quote Link to comment Share on other sites More sharing options...
jainen Posted April 5, 2012 Report Share Posted April 5, 2012 >>I don't think the Cancer Society would like to get involved in real estate deals<< Surely you jest? Do you suppose cancer research is funded by those address labels they send out? [this was in sarcasm font.] When his mortgage holder died, that didn't change the taxpayer's situation any more than Washington Mutual going bankrupt. The note was an asset transferred to the Cancer Society or another heir. Contact the estate to find out what actually happened (which might be different from what was supposed to happen). Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 5, 2012 Report Share Posted April 5, 2012 If the note was donated to the Cancer Society, as it sounds like happened, then he still makes his payments, and he still gets to deduct his interest portion of his payments. Who holds the note is not important to him, tho he should get a 1098 from the Society. Quote Link to comment Share on other sites More sharing options...
ljwalters Posted April 6, 2012 Author Report Share Posted April 6, 2012 Thanks everyone. I guess we need to find out who the executor is. Quote Link to comment Share on other sites More sharing options...
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