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Form 6252 Installment Sale - Taxpayer forgave balance due. I believe I need to calculate new adjusted basis, Where do I enter this?
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I also was wondering that about the 1099-C.
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Individual who owed debt came on hard times & my client forgave the debt.
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I did check Pub 537 regarding the rules to figure gain or loss from the disposition of an installment obligation. My question is where to enter it in ProSeries.
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No not a relative
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Recalculate the new gain, subtract all gains portions previously reported, report the balance of the gain in 2023 OR CAPITAL LOSS needed to report only the new total gain over all years.
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And if it turns out to be a loss, and the property sold was personal use, no deduction allowed. I think that would be the case even with gain reported in earlier years; there would not be a way to "recapture" it.