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The answer is yes. The amount depends on how you have reported the sale to date.
Once your installment sale method payments won't be made, you can immediately recognize the change in sale and the lid in the year you fix the loss. The year of bankruptcy is likely the year to recognize the loud.
The math is involved, but if you sold expecting $100,000 gain, and recognized $60k of the gain already, you would get to revisit the entire gain or loss and get the overall loss and recover the gain recognized to date.
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You will get to claim the loss. Its character will allow you to apply some against other capital gains you might have, and apply the excess to future years.
The calculation of a loss in an installment sale and the application of the loss against other income are involved. I wanted to tell you that the loss was deductible, which was your original question.
I suggest given the size of the loss and the complexity of the calculations that you consider a tax pro to prepare your return.
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