Brewster sold a rental house in 2019 for $90,000, using an installing agreement and taking a lien
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Question:
Brewster sold a rental house in 2019 for $90,000, using an installing agreement and taking a lien on the property. His adjusted basis at the time of sale was $70,000. The buyer made a $5,000 down payment and signed a mortgage, secured by the property, for the balance. Using the installment method, Brewster reported a gain of 1,111 on his 2019 return. The buyer then failed to make any of the required paymets, and Brewster repossessed the property in March 2020. The cost of repossession was $500. What is Brewster’s taxable gain on the repossession?
Options:
- $0
- $3,889
- $18,389
- $18,889
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
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