An accounting question…about notes I created… - Posted by Tom Nagle
Posted by Tom Nagle on March 14, 2000 at 12:12:36:
I have a meeting next week with a new accountant, and this week I have been trying to put together my taxes for my corp. I have been alright with everything dealing with properties that I have flipped, rehabs, etc. but I have a question involving the accounting of two notes I created last year. I want to do my taxes on my own (this year) and compare them to what my accountant comes up with…
Anyway, I sold two properties last year in which I created firsts and seconds on both of them. I sold one of the firsts to a local investor, and I am holding the second on the one note and a first and a second on the other note.
My question deals with the property where I hold the first and the second notes. Do I owe the whole capital gains tax on them for last year, or is the interest that I received on those notes all that is taxable? I am having the darndest time trying to figure this out, even though I am using Quickbooks with TurboTax Business. Any help would be greatly appreciated.