Mytaxlady57 Posted April 1, 2022 Report Share Posted April 1, 2022 Client sold acreage to brother 5 years ago and each year paid principal and interest accordingly. Brother died in 2021 no beneficiaries and has a balance owed $15K on the agreement. Since there will be no final payment does the client have to pay taxes on the $15K as repossessed property. Never been in this type of situation so thanks for your help in advance. Quote Link to comment Share on other sites More sharing options...
Slippery Pencil Posted April 2, 2022 Report Share Posted April 2, 2022 Pub 537 has instructions on how to figure the gain https://www.irs.gov/pub/irs-pdf/p537.pdf#en_US_2021_publink1000221736 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted April 2, 2022 Report Share Posted April 2, 2022 The installment debt will become part of the estate. The estate is responsible for liquidating the assets and paying off the debts. 5 Quote Link to comment Share on other sites More sharing options...
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