Note Buying And Tax Write-Off
My llc is buying a 2nd lien holder note (short-saleing the first). The loan note amount is $30k we are buying it for $3k from the bank. They have prepared documents making my llc the note holder. At close we are basically taking zero or a loss on the note and releasing the lien. Is it true I take a $30k loss at tax time? If so, how? What do I need to support this besides a great CPA?
your loss would be $3,000 what you paid for the note...
So you bought the note and you released the lien. What did you end up with? The property, cash??