My partner an i purchased a land for $500K some 10 years ago.
Each of us paid 150K cash and and had a Seller financed Loan of 200K secured by the Note on the land with 6 per cent interest. We paid interest all these years.
in 2017 we signed a Deed in lieu of Foreclosure : returned the Land with FMV of 189K and paid cash of 11K thus making 200K.
The Seller is going to file 1099-C for 189K with each of us responsible for 94.5K
What is my exposure tax wise?
