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I sold a piece of real estate for $100,000 and my cost basis at the time was $20,000. I received $25,000 of the proceeds upfront with the remaining $75,000 balance due in 2 years. I have paid the capital gains taxes associated with the first payment of


The BIDaWIZ Team's Answer:

The exchange of the $75K note, for the property, is not a taxable

transaction. Your basis, in the capital asset, is $75K.

The BIDaWIZ Team



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