Posted by The Baze on March 07, 2000 at 12:15:21:
You can write off a bad debt ONLY if the obligation was reported as income previuosly. As a cash basis taxpayer, which I’m sure you are, did you report the mortgage as income in the year you took it back? If not, then you cannot write off the debt. That’s what’s called double dipping and the friendly folks at the Internal Ripoff Service don’t care much for it. Hope this helps.