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How do you show a refinance of a current seller financed form 6252 in general and in proseries?

CB777
Level 1
 
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sjrcpa
Level 15

Was the principal changed?


Ex-AllStar

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11 Comments 11
sjrcpa
Level 15

Was the principal changed?


Ex-AllStar
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CB777
Level 1
Yes.  There were actually two properties sold on two different installments, with gain.  Those 2 installments have been combined with a new installment sale into one loan.
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sjrcpa
Level 15
But is the principal still the same?

Ex-AllStar
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CB777
Level 1
Yes, for the old loans, but they have been added to the new loan.  Are you leading me to leaving the two alone and just adding the third part on it's own 6252?
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sjrcpa
Level 15
If old loan 1 was 30K and old loan 2 was $50K and new loan is 80K the principal did not change. If so, I'd leave the 2 installment sales. Each year prorate the payments rec'd between each sale.Did both sales have the same Gross Profit %?

Ex-AllStar
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CB777
Level 1
Old loan 1 had a balance of $10K.  Old loan 2 Had a balance of $15K.  New loan is $65K (10 + 15 +40).  Gross Profit is different on each loan.
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sjrcpa
Level 15
What caused the 40K increase?

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CB777
Level 1
The installment sale of an additional property
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sjrcpa
Level 15
Then leave the 2 original installment sales and add the 3rd one. Pro rate the principal payments rec'd to each of the 2 installment sales.

Ex-AllStar
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CB777
Level 1
Thank you
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sjrcpa
Level 15
You're welcome.

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