As of 11/30/18 there was a principal balance of $1,003,509, so you would recognize this amount in full if you collected the note in full.

A general answer to most tax or legal issues can be proven wrong with many exceptions, that is why we both agree that people should be consulting a specialist. 

I went to college for a semester and was specifically told to drop out by someone there since they recognized that it was not going to benefit me specifically.

But, getting people to our site for greater details, more pics, and a structure that we have TESTED and PROVEN to work (with many $$$) is important to us.  

IRS will not recognize below market interest and will impute higher interest income to the Lender.

If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up.5.

It might rise to the level of non-passive trade or Business If you qualify as RE pro or meet any of the rental exceptions. 3) Provided the requirements for a like-kind exchange are met, the suspended passive losses are carried over into the replacement property, and the income generated from the replacement property can be used to offset those suspended passive losses.One way to tap into the suspended losses of Like kind exchanged property and also defer the capital gain:  Structure an exchange to recognize again to the extent of the suspended loss.

Working with any lender, especially one that is changing loan officers frequently has proven complicated.Have a great week!

It amounts to nothing more than a gift.I something can not be proven I find it very difficult to believe.

I've proven the concept to myself of what RE can do...now I just have to follow the plan and be patient.