Accounting in the note investing business

[John Newsom]

First year in note investing and looking forward to end of year accounting.  I trying to find a CPA, preferably, in Gainesville, FL area and trying to have some screening questions to ask them.

Background: l purchase a note for 50% of UPB and a payment is made.

Question: Is the principal that is collected 100% principal repayment, or, is it 50% principal repayment and 50% capital gain?

[Linda Hastings]

@John Newsom In general, it is best to only ask your question once in the forum with the topic that best fits the question. It helps keep the dialog to one thread instead of bouncing back and forth between two. In this case, your question spans two topics (note investing and taxes), so I can see how it would be hard to pick which forum to post in. If you have a tax question though, best to post in the tax and legal forum since that one is probably watched by more CPAs, who are most qualified to answer the question.

In any case, good for you for getting involved and asking questions. :)