Tom purchased some commercial property for $550,000 and pledged an installment obligation as security for the loan he took out to acquire the property. under pledging rules of 453a(d)(1), the net proceeds of the loan in his case would be considered as:

A. a payment on the installment obligation. 

B. acquisition indebtedness. 

C. nontaxable loan proceeds. 

D. a return of basis

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The detailed answer for the above question is provided below The correct answer in this case is A a ... View the full answer