Client sold rental property during the year and is holding the Mortgage with the Buyer.
When using the Installment method, The overall Value, Basis is a lost and normally you can't use the Installment method when there is no Profit. How do I present this on the return for 2020 and how do I record the principle payments going forward since there is no
Thank you TaxGuyBill.
But if the client is still holding the mortgage going forward, I Know I have to report the Interest, But what happens to the Principle payment. There is no Loan/Payable to offset. So at this point does the client holding the mortgage just pocket the principle and not report?
thanks for your advice