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PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4104
Experience:  35 years tax experience, including four years at a Big 4 firm.
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I have been holding a small mortgage years with a relative.

Customer Question

i have been holding a small mortgage for 12 years with a relative. It was a 25 year mortgage, with a no pre pay for 12 years. 12 years is up. they want to pay it off. my share is 325k i will get hit with 30% taxes plus unless there is a way to get aroud it?
There is no unified tax credit left, the building was given to us by our deceased father. We sold it 12 years ago for 1 million, 650k remains in principle. We were set up as an S corp, no reason for that now, there was in the past. The mortgage has paid the S corp and the s corp distributes the $ to us monthly
Submitted: 1 year ago.
Category: Tax
Expert:  PDtax replied 1 year ago.

Hi from just answer. I'm PDtax, and will assist.

If you sold the s shares after inheritance, wouldn't you have a step up in basis? Does that eliminate the gain?

If that answers your question, positive feedback is appreciated. I'm PDtax.