From TaxAlmanac, A Free Online Resource for Tax Professionals
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Income from a deposit on a cancelled sale
Gpevan06 (talk|edits) said:
| 14 March 2007
|
| I have a client who received $23,000 in deposit money on the sale of his personal residence that was cancelled by the buyer. He was able to keep this money. He later sold the home at substantially less than the original sales contract. How does he treat this $23,000?
|
Kevinh5 (talk|edits) said:
| 14 March 2007
|
| This must happen every week because this has been discussed at least 6 times in the last 2 months and the answer is still the same. Have you tried the search feature to the left???
|
Taxea (talk|edits) said:
| 14 March 2007
|
| Kevin5 you are beginning to sound like me taxea
|
Death&Taxes (talk|edits) said:
| 14 March 2007
|
| Well, last night my client explained he and brother would be selling Mom's house for $175,000 and her cost was $7500 and she had 'gifted' it to them for $1 last year, going to live in senior apartments down the street, I was going to ask if the sale qualifed for Sec. 121 but somewhere in my head I heard Kevin shouting 'Thou Shall Not Do That, Thou Shall Do Thou's Own Search First' and I abstained. As Rick Blaine says to Renault, 'you may not be subtle but you are effective.'
|
Kevinh5 (talk|edits) said:
| 14 March 2007
|
| You can tell tax season is wearing me down.
|
To join in on this discussion, you must first
log in.
