"Nan Eklund" <naneklund[at]aol.com> wrote:

- quote -

Nan,

Thank you for your help.

Lisa

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It's an installment sale but one at a loss is taken in the
year of the sale. Your $7,000 loss is taken on Schedule D,
directly against any capital gains, dollar for dollar. If
you don't have any gains to be offset, then you get a $3,000
loss (this is the annual capital loss limit) this year and
carry the balance to next year.

The interest on the sale, however, is taxable on Schedule B
in full as you get it.

Nan, EA in LA

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I am in escrow to sell a piece of bare land that I inherited
in 2000. The value of the land when my mother died was
$30,000 on the 706. I am selling it for $23,000. The buyer
is putting down 14,000 and I am carrying the papers for the
balance of $9,000 at 7% interest with payments over 3 years.
The property has not been used for anything during the last
threee years. How do I take the approximate $7,000 loss on
my taxes? Can it be taken all at once or does it need to be
spread over the 3 years of the loan?

I usually do my own taxes but this is a new event for me and
I am considering using a EA or CPA for my 2003 taxes.

Thanks for any help.

Lisa

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