Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 11-12-2009, 12:14 PM
Junior Member
 
Join Date: Nov 2009
Posts: 1
Contractor Default on Unsecured Loan for Land

I owned a piece of vacant land as an investment. I recently sold it to a contractor/builder & former friend who's company issued me an unsecured Note (I know, stupid!) for the purchase price. The Note was to come due in one year or when he completed & sold the house he was building on the land. Along comes the meltdown of 2008/2009 and the contractor cannot meet his obligations. The house he's building on what used to be my lot is now being foreclosed upon. He has said he cannot meet his obligations and cannot pay me for the land. I filed a judgment against his company, however hold out NO hope of collecting. A couple of questions:

1. Is this a non-business bad debt or a business bad debt?
2. How much can I deduct as the loss?
a. Amount I originally paid for the land many years ago.
b. Amount land was sold to him for -- I have not paid tax on the gain from the sale as it was all this year.
3. Can I include the cost of filing the judgment in the basis/amount of the loss?

Thanks!


Last edited by rleeann : 11-12-2009 at 12:17 PM.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Idependant contractor Madison09 Income 1 07-07-2009 02:11 PM
How do I write this 1099 contractor off. skiandboard Miscellaneous 1 02-07-2009 11:17 PM
land swap Joe ca Capital Gains 1 05-05-2008 03:19 PM
Need to give a 1099 to a contractor harv5 Sole-Proprietorship 1 04-18-2007 02:10 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning