Posted by Kristi on April 07, 2005 at 12:53:03:
Anyone??? Need help as 4/15 is around the corner!
Loss on 2nd loan - Posted by Kristi
Posted by Kristi on March 25, 2005 at 11:57:42:
My mother-in-law sold her house 5 years ago to her brother. He was able to finance most of the purchase price. She loaned him 75K - and recorded the loan appropriately.
Last year, good brother decided to let the mortgage company forclose on his loan. They sold the house and paid his mortgage, but there was not anything left over to pay her - so she has a 75K loss.
Where would this be recorded on the tax return? and how much is she allowed to write off per year?