Posted by Bud Breanstetter on May 06, 1999 at 17:26:11:
This is the type of deal that if done with a bank loan could be considered fraud. With a typical 100K property your partner would have shown 100K on the 1099( less the fix up your 10K credits on return). He would also have to show as an instalment sale and the sale of the note. Your basis then becomes the actual costs. If your partner(or you) acted as broker and sold to the institutional buyer you would not have to discount as much.