Page 52 - Other Income for Individuals
P. 52

Reduced Price after Purchase
















       In most cases, if the seller

          reduces the amount of
          debt you owe for property
          you purchased, you don’t

          have income from the
          reduction.

       The reduction of the debt
          is treated as a purchase
          price adjustment and

          reduces your basis in the
          property.


                                                                          Price











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