earnest12
Level 1

My client sold real estate 1-15-15.  It is reported as installment sale income.  He refinanced on 6-6-19 for purchaser, but used the incorrect amount as the beginning balance, $9,000 less than the actual amount owed.  If the basis stays the same as the original amount, there will be a $42,700 loss.  Does the basis change?

0 Cheers
George4Tacks
Level 15

Review https://www.law.cornell.edu/cfr/text/26/1.1001-3

The numbers in your question make absolutely no sense to me. Which software are you using?

 


Answers are easy. Questions are hard!